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2022 (12) TMI 1074 - AT - Income TaxTP adjustments - adverse effect of forex due to depreciation of Indian Rupees resulting in incremental import costs which is not attributable to the transfer pricing of its purchase of raw materials from its AEs - HELD THAT:- As relying on assessee’s own case for AY 2011-12 [2022 (10) TMI 474 - ITAT BANGALORE] this issue is remitted to the AO/TPO with a direction to consider the foreign exchange fluctuation adjustment for computing the ALP. Excluding the additional custom duty costs as a result of increased import costs of raw materials due to forex impact of depreciation of the Indian Rupee - As relying on assessee’s own case for AY 2011-12 [2022 (10) TMI 474 - ITAT BANGALORE] to bring uniformity, the customs duty was to be eliminated from the comparable price also to arrive at correct PLI. Accordingly, we remit the issue to the file of AO for fresh consideration. TP Adjustment - international transactions of the Assessee - HELD THAT:- We notice that the coordinate bench of the Tribunal in the case of IKA India (P.) Ltd [2018 (10) TMI 49 - ITAT BANGALORE] considered a similar issues and held that section 92 of the Act can be applied only in respect of international transactions i.e., transactions with AE. Recomputation of operating profit margin pursuant to the MAP resolution - This issue was considered in assessee’s own case for AY 2011-12 [2022 (10) TMI 474 - ITAT BANGALORE] thus we remit this issue to the AO with a direction to re-compute the operating margins pursuant to the MAP resolution.
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