CCD cannot be treated as ECB/loan for ALP determination

Praxair India Private Limited Vs DCIT (ITAT Bangalore)

The assessee during the financial year 2009-2010, entered into a debenture subscription agreement with its AEs, Praxair International Finance. In the agreement, the term ‘issue price’ is defined as ‘Compulsory Convertible Debentures (CCDs)’ will be issued at par at Rs.10 each. Further, the subscription considered shall be converted into INR as per the prescribed exchange rate and the number of CCDs allotted to the holders will be the subscription

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