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2019 (7) TMI 1965 - AT - Income TaxTP Adjustment - comparable selection - Accentia Technologies Ltd inclusion/inclusion - HELD THAT:- Regarding the business model, while the assessee company is in HMT model, the comparable in question depends mostly on outsourcing of business processes. The audit report clearly mentions that no segmental data has been prepared and company has only one segment of activity which is HRCM segment. Hence, keeping in view the factors viz. dissimilar business model, non-comparable turnover, extraordinary events of merger and acquisitions leading to higher profits and non-availability of the segmental data and considering the order of the Tribunal in the assessee’s own case for the assessment year 2009-10, we hereby hold that the ld. CIT(A) has rightly excluded the company “Accentia Technologies Ltd.” from the final list of comparables. Consider foreign exchange gain/loss as non-operative while calculating the operating profit margin of the Assessee and the comparable companies - HELD THAT:- The foreign exchange emanating from international transaction is a part of business receipt and hence any loss or gain on foreign exchange fluctuation invariably is a part of operational income. Further, owing to the judgments of FISERV India Pvt. Ltd. [2016 (1) TMI 1276 - DELHI HIGH COURT] and in the case of PCIT Vs BC Management Services Pvt. Ltd. [2017 (12) TMI 255 - DELHI HIGH COURT] wherein it was held that even the Safe Harbor Rules come into force from 2013 and hence is not applicable to the instant year, we hereby direct the Revenue to treat the foreign exchange gains or losses under operating revenues.
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