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2016 (1) TMI 598 - AT - Income TaxTreatment of foreign exchange fluctuation gain/loss as operating item - Held that:- We direct the AO/TPO to treat the foreign exchange gain/loss as an operating item. Adding back transfer pricing adjustment to income assessed under Section 115JB (MAT) - Held that:- In the present case there is no allegation in the assessment order much less any finding that either that profit and loss account has not been drawn up in accordance with Part II and Part III of Schedule VI of the Companies Act, or that any incorrect accounting policies, accounting standards has been adopted for preparing such accounts or that the method/rate of depreciation has been incorrectly adopted for preparation of profit and loss account.In view of aforesaid, we hold that the AO erred in adding back the transfer pricing adjustment of the book profits under Section 115JB of the Act. Accordingly, this ground of the appeal raised by the assessee is allowed and the AO is directed to exclude the transfer pricing adjustment, if such adjustment survives, from the book profits computed under Section 115JB of the Act.
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