2016 (2) TMI 1078 - HC - Income Tax

Treating income/loss on account of foreign exchange fluctuation as part of the operating revenue/expense - TPA - Held that - Reliance placed by the Revenue on the Safe Harbour Notification dated 18th September 2013 will be of no avail to the Revenue since that notice is prospective in nature. It is seen that by the order in Pr. Commissioner of Income Tax-3 v. Fiserv India Pvt. Ltd. (2016 (1) TMI 1276 - DELHI HIGH COURT ), this Court has accepted the above plea of the Assessee. Even otherwise, the decisions referred to by the ITAT in the impugned order on the issue also answer the question in favour of the Assessee and against the Revenue.

Summary

The High Court dismissed the Revenue's appeal against the ITAT order for the Assessment Year 2010-11 regarding the treatment of income/loss on foreign exchange fluctuation as part of operating revenue/expense. The Court found no substantial question of law for determination.