If Assessee Earns Interest at Arm’s Length Rate no Transfer pricing Adjustment Needed

Maharashtra Seamless Ltd Vs DCIT (ITAT Delhi)

The appeal by Maharashtra Seamless Ltd against the order of CIT(A)-44, New Delhi, dated 28.06.2019, revolves around transfer pricing adjustments concerning interest charged on a foreign currency loan extended to an Associated Enterprise (AE), Jindal Pipes (Singapore) Pte. Ltd. The crux of the matter lies in whether the interest rate charged by the assessee is at arm’s length, thus warranting no transfer pricing adjustment.

Analysi

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