Held that, foreign exchange fluctuation gain/loss should be treated as an operating income/expenses for purpose of computing ALP. Rejection of comparable is held to be not valid when foreign exchange was earned. Failure to provide annual report justified in rejecting comparable Where assessee selected a comparable company but failed to prove comparability of this company with reference to annual report of this company, TPO was justified in rejecting said comparable, unit got physically moved during succeeding financial year, factor of relocation of its SEZ unit could not be considered as an extraordinary event during, segmental information was not available. could not be accepted as valid comparable, company engaged in purchase and sale of products could not be accepted as valid comparable.TP adjustment has to be restricted to international transactions of assessee with its Associated Enterprises only. (AY. 2014-15)
Synechron Technologies (P.) Ltd. v. ACIT (2021) 188 ITD 628 (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Foreign exchange fluctuation gain/loss be treated as an operating income / expenses-Comparable-Rejection of comparable was held to be not valid-Failure to provide annual report-Rejection of comparable was held to be valid-Customers whose segmental information was not available. could not be accepted as valid comparable-a comparable company engaged in purchase and sale of products could not be accepted as valid comparable-TP adjustment, if any, has to be restricted to international transactions of assessee with its Associated Enterprises only. [S. 92A]