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2016 (9) TMI 1308 - AT - Income TaxForeign exchange loss - Held that:- DRP in considering foreign exchange loss incurred by the assessee as operative in nature while computing the net margin of the assessee under the TNNM method, the learned Counsel for the assessee failrly admitted that this issue is covered against the assessee by the orders of this Tribunal. TPO has clearly stated in the TP order that the foreign exchange loss forms part of the operating margins for the reason that as per the requirements of AS-11 issued by ICAI, foreign exchange gain/loss of any nature relating to any item whatsoever is required to be charged off to the P&L a/c. This position has been consistent with the extant practice. Selection of comparables - Held that:- Considering ITES activities performed by the assessee companies dissimilar with that of assessee need to be deselcted from final list of comparability. Deduction u/s 10A computation - Held that:- Telecommunication charges and other expenditure should be excluded from the export turnover as well as total turnover is concerned, we find that the order of the DRP is in accordance with the decision of the Hon'ble Karnataka High Court in the case of Tata Elxis [2011 (8) TMI 782 - KARNATAKA HIGH COURT] and respectfully following the same, we see no reason to interfere with the order of the DRP.
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