ITAT says Foreign Currency Loans Must Be Benchmarked in the Relevant Currency

Tata Steel had advanced loans to overseas AEs at SIBOR + 100 bps and JIBAR + 133 bps. The TPO instead applied the assessee's domestic rupee borrowing rate of 8.93% plus 3% risk premium. The Tribunal held that the currency and market in which the loan is denominated are fundamental to its pricing and deleted the ₹9.37 crore transfer-pricing adjustment.