Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1841 - AT - Income TaxTP Adjustment - Forex loss on cancellation of forward contract - removing forex fluctuation gain from operating profit - HELD THAT:- As in FISERV INDIA PVT. LTD. [2016 (1) TMI 1276 - DELHI HIGH COURT] has decided this issue in favour of the assessee and against the Revenue - As directed to treat the foreign exchange gain/loss as an operating item. The AO/TPO was directed to compute the ALP of the international transactions entered into by FIPL with its AEs. Also see AGILIS INFORMATION TECHNOLOGIES INTERNATIONAL (I) PVT. LTD. [2016 (2) TMI 1078 - DELHI HIGH COURT] we direct the Assessing Officer to treat the forex fluctuation gain as operating income for calculation of OP/OC. The assessee succeeds on this point. Comparable selection - inclusion of Infosys Ltd and Wipro Technologies as good comparables - HELD THAT:- As decided on own case . [2015 (5) TMI 637 - ITAT DELHI] and [2015 (6) TMI 132 - ITAT DELHI] respectfully following the judgment of the Hon'ble jurisdictional High Court in Agnity India [2013 (7) TMI 696 - DELHI HIGH COURT] we hold that Infosys Technologies Ltd., cannot be treated as comparable with the assessee company. This company is, therefore, directed to be excluded from the list of comparables. WIPRO Technologies Services Ltd - Comparable as excluded by the Tribunal in the case of Microsoft India [R&D] Pvt Ltd. [2018 (10) TMI 70 - ITAT DELHI] Reduction in deduction allowed u/s 10A - HELD THAT:- Once the forex fluctuation gain is treated as part of operating profit, then the same deserves to be allocated amongst various units of the assessee and basis of allocation should be same as that deduction for the allocation of expenses amongst various units. We, accordingly, direct the Assessing Officer to allocate forex fluctuation gain also to Pune unit based on turnover. The assessee succeeds on this issue. Calculation of surcharge and education cess - AO has calculated surcharge and education cess on the gross amount without giving effect to the MAT credit deduction by the assessee for the year under consideration - HELD THAT:- As relying on M/S. VACMENT INDIA AGRA [2014 (10) TMI 787 - ALLAHABAD HIGH COURT]we direct the Assessing Officer to calculate the surcharge and education cess on net tax liability. The assessee succeeds on this issue also. Short credit of TDS - HELD THAT:- We direct the assessee to furnish relevant details of TDS and the Assessing Officer is directed to verify the same and allow credit of TDS as per provisions of law. Charging of interest is consequential and the Assessing Officer is directed to charge interest as per provisions of law.
|