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TMI Blog2016 (1) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... his question the Court finds that the ITAT has undertaken a detailed factual analysis and given cogent reasons for the exclusion of the comparables in question. The Court is not persuaded to hold that any substantial question of law arises as regards the said issue. - S. MURALIDHAR VIBHU BAKHRU JJ. Appellant Through: Mr. Rohit Madan, Senior standing counsel. Respondent Through: Mr. Sachit Jolly, Advocate. O R D E R 1. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ( Act ) is directed against the impugned order dated 26th June 2015 passed by the Income Tax Appellate Tribunal ( ITAT ) in ITA No. 1822/Del/2014 for the Assessment Year ( AY ) 2009-10. 2. The Assessee, M/s. Fise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FIPL were modified. Thereafter, the TPO selected a list of 13 comparables and determined the PLI of the comparables companies at 25.78% as against PLI of 15% of FIPL. Accordingly, the TPO proposed a transfer pricing adjustment of ₹ 19,69,44,637 to the taxable income of the Assessee (FIPL). 4. By an order dated 20th December 2013 the Dispute Resolution Panel ( DRP ) upheld the proposed adjustment made by the TPO, subject to claim of working capital adjustment as per the OECD methodology. The TPO was directed to re-compute operating margin of FIPL as well as comparable companies in terms of the guidelines provided by Safe Harbour Notification dated 18th September 2013. A revised final list of 14 comparable companies was drawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT required AO/TPO to take into account the effect that the acquisition by Mindtree of another company TES PV Electronic Solutions Private Limited, with the approval of the High Court of Karnataka, would have in treating it as a comparable. 8. The ITAT has also dealt with the issue of foreign exchange fluctuation as operating income/expenses and held that this issue is no longer res integra and is in favour of the Assessee by the decision of the Coordinate Bench of ITAT in Westfalia Separator India Pvt. Ltd. v. ACIT (ITA No. 4446/D/02). Accordingly, the AO/TPO was directed to treat the foreign exchange gain/loss as an operating item. The AO/TPO was directed to compute the ALP of the international transactions entered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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