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2017 (9) TMI 1620 - AT - Income TaxTPA - comparable selection criteria - Held that:- Companies functionality dissimlar with of assessee who renders services in the nature of investment advisory services to its AE, need to be deselected from final list of comparability. Adjustment on account of interest on outstanding receivables - Held that:- No in-depth analysis of the receivables has been made by the TPO. Accordingly, we deem it appropriate to restore the issue of interest on receivables in all the three years to the file of Assessing Officer/TPO for recalculating the interest on receivables in conformity with the ratio of judgment of the Hon'ble Delhi High Court in the case of Kusum Health Care Pvt. Ltd. (2017 (4) TMI 1254 - DELHI HIGH COURT) Treatment to foreign exchange gain/loss as operating in nature - Held that:- This issue is squarely covered in favour of the assessee by the order in the case of Ericsson India (P) Ltd vs. ACIT [2017 (3) TMI 1316 - ITAT DELHI] while ruling in favour of the assessee, directed the TPO to treat the foreign exchange gain/loss as operating in nature in calculating the operating margin of the assessee as well as final comparable companies. Respectfully following the same, we set aside this issue to the file of TPO/AO to treat the foreign exchange gain/loss as operating in nature in calculating the operating margin of the assessee as well as final comparable companies.
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