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2023 (5) TMI 943 - AT - Income TaxTP adjustment - computation of profit level indicator (PLI) - foreign exchange loss - part of operating expenses or not - Assessee claims that Foreign exchange loss is not to be considered as operating expense while computing profit level indicator with respect to the computation of arm's-length price with respect to the sale of agricultural commodities to its associated enterprise - HELD THAT:- According to the learned dispute resolution panel when the assessee entered into an agreement for sale in foreign currency, the figure of sales and forex loss/gain taken together gives the correct picture. In reality, the assessee incurs neither any loss nor any gain because of forex fluctuation it is only an accounting treatment. Assessee in reality did not incur any liability towards buyer's account on foreign exchange fluctuation. DRP also extracted the scenario provided by the assessee wherein it is proved that foreign exchange loss incurred even before the sale has been made and that is because of reinstatement/adjustment of advances received against sales. Sales and forex losses incurred by the assessee are closely interlinked for this reason. Assessee in the sale price also giving AE benefit of forex fluctuation also. No infirmity in the direction of the LD DRP by including forex loss in the PLI computation of Assessee. Ground is dismissed. Late payment of dues of employees contribution as per respective due dates of the respective Act - HELD THAT:- In view of the decision of Honourable Supreme court in case of Checkmate solutions Services Limited [2022 (10) TMI 617 - SUPREME COURT] this issue is to be decided against the assessee and hence Ground is dismissed. Provision of bad and doubtful debts which is not writing off actual debts - HELD THAT:- As it does not fulfill the condition of allowability as bad debts and hence ld DRP has correctly upheld the order of the ld AO. We dismiss this ground also. Allowance of carry forward losses - HELD THAT:- We set aside this issue to the file of the dl AO that if the necessary conditions are satisfied, the claim of such set off may be examined in accordance with the law. This ground is allowed subject to verification.
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