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2017 (10) TMI 1416 - HC - Income TaxTPA - gains/losses arising out of foreign exchange fluctuation too have to be benchmarked in the determination of ALP under Section 92CA - Held that:- We find considerable force in the submission of ld. counsel for the assessee that ld. DRP wrongly invoked Safe Harbour Rule for coming to the conclusion that forex gain/loss was not to be treated as operating income/ loss for current assessment year because the Safe Harbour Rules, in any case, were applicable from 18-9-2013 and prior to that the said Rules could not be applied. That apart, it is not disputed that in the case of assessee forex gain/ loss was related to sale price of export, which was in US dollar. Therefore, the entire receipts were on revenue account. The Court is of the opinion facially that like in the case of payment towards bank guarantee, interest etc., the outgoings would essentially be covered as operative costs. Admit surviving question as follows: - “Did the Tribunal commit an error in excluding the data in respect of the comparables, i.e., Aptico Ltd., Rights Ltd. and Kitco Ltd. and Apitco Ltd., Kitco Ltd., Tee Consulting Engineers Ltd, Mahindra Consulting Engineers Ltd., Infoedge India Pvt. Ltd. and MMTV Ltd. having regard to the facts and circumstances of the case.”
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