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2018 (5) TMI 232 - ITAT DELHITPA - selection of comparables by Ld. TPO as well as exclusion of certain comparables that have been proposed by assessee - Held that:- Assessee functions as IT enabled service provider, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Disallowance on account of foreign exchange fluctuation by adjusting the same against the interest income shown under the head ‘income from other sources’ - Held that:- On one hand assessee projects itself to be a risk-free company wherein all the direct, indirect costs incurred by assessee including foreign exchange fluctuations are included in the cost remunerated by its AE. On the other hand assessee is considering loss earned due to foreign exchange fluctuation on conversion of its export revenues into INR as income from other sources. In our considered opinion assessee cannot blow hot and cold at the same time. We are therefore of the considered opinion that Ld. TPO was right in considering the loss incurred by assessee due to foreign exchange fluctuation as business loss. Insofar as providing adjustment in terms of foreign exchange fluctuation is concerned in respect of comparables, assessee is directed to provide necessary details in respect of any such risk assumed by such comparables that has been finally selected hereinabove for purpose of benchmarking international transaction. Ld.TPO shall then verify the same and accordingly grant risk adjustment while computing margin of assessee.
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