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2022 (11) TMI 245 - AT - Income TaxForeign exchange fluctuation gain - Treatment to Forex gain/loss arising from business transaction - non-operating in nature OR operating revenue/cost - HELD THAT:- Tribunal has held in assessee’s own case order dated 25-02-2021 [2021 (2) TMI 1146 - ITAT PUNE] that foreign exchange gain is a part of operating revenue. The ld. CIT DR could not place on record documents/evidences to suggest any deviation of facts. In view thereof, following the same parity of reasoning in assessee’s own case in earlier years, the grounds on forex gain issue are allowed. Insurance claim receipt in respect of export assignment damage claim - HELD THAT:- As observed by the Tribunal that if any item at the time of creation/payment if it is taken as part of operating cost in the year under consideration, then, it would be operating in nature and would constitute operating income. We notice that at page 5 of the D.R.P’s order there is a table given in which it is stated that “insurance claim receipt in respect of export assignment damage claim”, which therefore, signifies it as operating cost. Once it is operating cost then in the year under consideration it would also draw the same colour viz. it would be operating in nature and would constitute operating income. This ground of the assessee is therefore, allowed. Payment of intra group services - HELD THAT:- Tribunal for A.Y. 2013-14 [2021 (2) TMI 1146 - ITAT PUNE] has observed that since T.P.O determined NIL ALP on the preliminary premises that there was no evidence of receipt of services and that the Tribunal has noticed the fact of receipt of services, therefore, this issue was set aside and the matter was remanded back to the file of the A.O./TPO for determining the ALP of the international transaction of intra group services as per law after allowing reasonable opportunity of hearing to the assessee. Therefore, following the same parity of reasoning for this year also and on the same premises that on one hand the revenue states that no evidence was furnished regarding receipt of intra group services and on the other hand the Tribunal has noticed the fact of receipt of services, as per the aforestated order in assessee’s own case (supra) and also considering the submissions of the ld. D.R on this issue, therefore, for detailed factual verification this issue is remanded back to the file of the A.O/T.P.O to re-adjudicate as per law complying with the principles of natural justice. This ground of appeal is allowed for statistical purposes. T.P adjustment to be restricted only to value of international transactions in the manufacturing segment under TNMM on the basis of principle of proportionality - HELD THAT:- Similar issue has been dealt with by co-ordinate Bench of Pune Tribunal in the case of DCIT Cir. 1(1) Pune Vs. Franke Faber India Pvt. Ltd [2022 (8) TMI 198 - ITAT PUNE] - We set aside the findings of the ld. D.R.P on this issue and direct that the transfer pricing adjustment should be restricted only to the extent of the international transactions. Accordingly, Ground No. 6 stands allowed. Contribution made to gratuity fund and superannuation fund under the provisions of sec. 40A(7) - HELD THAT:- Issue decided in favour of assesee in assessee’s own case for A.Y. 2013-14 [2021 (2) TMI 1146 - ITAT PUNE] - Considering the provisions of section 40A(7) of the Act it is apparent that the deduction can be allowed only if the gratuity and superannuation funds are duly approved by the ld. C.I.T. In the present case before us, the ld. A.R for the assessee submitted that the issue is still pending approval from the ld. C.I.T. It is expected that the ld. C.I.T. will shortly pass orders with regard to assessee’s application. Following the same parity of reasons for this year also as in the preceding year, the matter is sent back to the file of the ld. A.O. who will decide the matter in conformity with such order of the ld. C.I.T. Ground No. 7 is allowed for statistical purposes. Addition of interest amount to the income of the assessee corresponding to the tax deducted treating it as not being recorded in the books of accounts of the assessee even though the same were netted off and reduced from the power expenses incurred in the year under consideration - HELD THAT:- This issue is remitted back to the file of the A.O for re-adjudication after considering the detailed evidences as filed by the assessee. Ground No. 8 is allowed for statistical purposes.
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