2017 (10) TMI 1416

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..... derable force in the submission of ld. counsel for the assessee that ld. DRP wrongly invoked Safe Harbour Rule for coming to the conclusion that forex gain/loss was not to be treated as operating income/ loss for current assessment year because the Safe Harbour Rules, in any case, were applicable from 18-9-2013 and prior to that the said Rules could not be applied. That apart, it is not disputed t .....

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..... ounsel For The Respondent : Mr. Satyen Sethi with Mr. Arta Tarana Panda and Ms. Gargi Sethee, Advocates ORDER 1. The Revenue appeals against the order of the Income Tax Appellate Tribunal ("ITAT") in these two appeals under Section 260A of the Income Tax Act, 1961. 2. It urges two questions of law - first relating to the exclusion of three comparables, i.e., Aptico Ltd., Rights Ltd. and Kitco .....

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..... time resulting into Forex gain/loss due to variation in the exchange rate from the date of transaction to that of conversion of Foreign exchange into Indian currency. An exporter/importer of goods/services enters into forward contract for sale/purchase of Forex to hedge itself from the fluctuation in exchange rates." 44. He observed that the amount of forex loss/gain and hedging cost/pr .....

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..... rior to that the said Rules could not be applied. That apart, it is not disputed that in the case of assessee forex gain/ loss was related to sale price of export, which was in US dollar. Therefore, the entire receipts were on revenue account. This issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of Woodward Governor's (supra), wherein it has been held tha .....

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..... , interest etc., the outgoings would essentially be covered as operative costs. 5. For these reasons, the Court is of the opinion that no question of law arises on this aspect. 6. The surviving question is as follows: - "Did the Tribunal commit an error in excluding the data in respect of the comparables, i.e., Aptico Ltd., Rights Ltd. and Kitco Ltd. (in ITA 419/2016) and Apitco Ltd., Kitco L .....

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