Itxa/435/2015 Of Commissioner Of Income Tax v. M/S. Everest Kanto Cylinder Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDITION INCOME TAX APPEAL NO.435 OF 2015 The Commissioner of Income-Tax, (LTU), Mumbai ...AppellantV/s. M/s.Everest Kanto Cylinder Ltd. ...Respondent ..... Ms.Samiksha Kanani with Mr.Suresh Kumar, Advocate for theAppellant. Mr.Percy Pardiwalla, Senior Counsel with Mr.Atul K. Jasani,Advocate for the Respondent. .... CORAM :S.V.GANGAPURWALA &A.M.BADAR JJ. DATED :18[th] July 2017. P.C. 1The learned counsel for the Appellant and theRespondent are at idem that three questions raised by theAppellant are covered in the Assessee's own case for the earlierAssessment year in Income-Tax Appeal No.1165 of 2013 decidedby this Court against the Revenue on 8[th] May 2015. As far asquestion No.4 as framed is concerned, the Tribunal has observedas under : “In light of the above decisions, the rate to be used forundertaking an adjustment should be LIBOR and not the average yield rates considered by the learned TPO.The LIBOR rate for March 2008 was 2.6798%.However the assessee has charged 7% from its AE asper the internal CUP available. Thus, the assessee hascharged interest to EKC Dubai and EKC china at therate higher than existing LIBOR rates. Accordingly, thesaid transaction of providing loan to EKC Dubai andEKC China is at arm's length. Additions made by theAO are accordingly set aside.” The said reasoning does not appear to be perverse. 3In light of above, no substantial question of law arise.The Appeal as such is dismissed. No costs. ( A.M.BADAR J.) ( S.V.GANGAPURWALA J.)