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2018 (9) TMI 1161 - AT - Income TaxTPA - comparable selection - Held that:- It is not in dispute that the assessee itself selected M/s Acropetal Technologies Ltd. as one of the comparables. When the assessee came to know that some adverse information about M/s Acropetal Technologies Ltd., nothing wrong in bringing it to the notice of the Transfer Pricing Officer and DRP and request for removal of that comparable from consideration. Therefore, this Tribunal is of the considered opinion that the TPO as well as DRP are bound to consider the information which was brought to their notice subsequent to the filing of transfer pricing documentation. Hence, this Tribunal is of the considered opinion that the matter needs to be reconsidered by the Transfer Pricing Officer. Accordingly, the orders of the authorities below are set aside and the issue is remitted back to the file of the Assessing Officer. AO shall follow the statutory provisions and pass the necessary orders as provided under Section 144C Exclusion of expenditure incurred in foreign currency towards communication and insurance from the total turnover - Held that:- Assessing Officer is directed to exclude the expenditure incurred by the assessee from both the export turnover and total turnover. The orders of the DRP as well as the Assessing Officer are modified accordingly. Consideration is exclusion of foreign exchange gain from profits of the undertaking - Held that:- Gain due to foreign exchange fluctuation on the export is a profit from export, therefore, this Tribunal is of the considered opinion that the same cannot be excluded. In fact, this Tribunal in the assessee's own case for assessment year 2009-10 had taken a similar view by placing reliance on the judgment of Madras High Court in CIT v. Pentasoft Technologies Ltd.[2010 (7) TMI 75 - MADRAS HIGH COURT] - the orders of the lower authorities are set aside and the Assessing Officer is directed to treat the gain due to foreign exchange fluctuation as part of the export profit.
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