TMI Blog2019 (4) TMI 2129X X X X Extracts X X X X X X X X Extracts X X X X ..... spectfully following the same ratio, we allow the grounds raised by the Revenue. Foreign exchange loss and risk adjustment - HELD THAT:- As we had already remanded back TP grounds to the file of the DRP, further we feel that the various companies will be included / excluded based on our remanding back the entire TP issues to the file of DRP. In view of the above, and more particularly when the assessee had provided the details of working risk adjustment before the DRP as well as the AO, in view of the above, we also remand risk adjustment issue to the file of DRP for deciding afresh, after affording opportunity of hearing and provide time to explain the case of the assessee. With respect to the ground no. 2 , we had taken consiste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and the uncontrolled comparables and without advising any reasonable accurate method of arriving at it as per Rule 10B(3) of Income tax Rules 1962. 03. Apropos ground no1 Ld. DR for the Revenue had submitted that the order passed by the DRP u/s.154 r.w.s.144C is cryptic as the DRP had excluded the Persistent Systems Solutions Ltd without giving elaborate and detailed finding. 04. Ld AR had submitted that this ground be sent back to the file of DRP for fresh decision 05. In this regard, we may point out that in the assessee s appeal bearing IT(TP)A.545/Bang/2015, we had already remanded back the entire TP issues to the file of the DRP for denovo examination of the entire case by passing a detailed and reasoned order. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of SAP Labs Ltd. v. Asstt. CIT [2012] 134 ITD 253/17 taxmann.com 16 (Bang.) and of another co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2007-08. We find that another co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2010-11 in its order in IT(TP)A Nos.291 427/Bang/2015 dt. 24.6.2016 has held that if foreign exchange gain / loss is operational in nature if it is linked to the exports / imports related to the particular year. To this extent, we find no infirmity in the order of the DRP. However, the facts related to the foreign exchange gain in this year, i.e. as to whether it is related to the business operations and whether they are in the capital or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service providers, as a matter of principle has held in many cases, ;including the one cited (supra), that risk adjustment cannot be granted unless the assessee has submitted computation of the same before the authorities below. In the case on hand, we find that though the assessee in Form 35A submitted before the DRP, at Annexure/Objection 13 thereof, mentioned risk adjustment at 4.92%, no scientific basis or working in respect of the assessee's claim vis- -vis the comparable companies had been provided. Even on pages 890 891 of paper book (Annexure 9- B), no working has been given in respect of risk adjustment claimed at 6.26% vis- -vis the comparable companies. Since the assessee has not given the computation of risk adjustment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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