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TMI Blog2018 (3) TMI 1814X X X X Extracts X X X X X X X X Extracts X X X X ..... ue arose before the Tribunal in ACIT Vs. Dana India Technical Centre Pvt. Ltd. [ 2016 (5) TMI 631 - ITAT PUNE] hold that while computing PLI for the year under consideration, the loss arising on account of foreign exchange fluctuation is to be excluded. However, the loss arising on account of export proceeds realized from exports of relevant year are to be considered while computing PLI of the assessee. In view thereof, we modify the order of CIT(A) and direct the Assessing Officer to re-compute the PLI in the hands of assessee and foreign exchange fluctuation losses of the earlier years are to be kept out of calculation of PLI for the year under consideration. - Decided against revenue - ITA No. 553/PUN/2015 - - - Dated:- 23-3-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act vide order dated 26.12.2014. The final assessment order was passed under section 143(3) r.w.s. 144C(13) of the Act on 24.02.2015, against which though, the DRP had given certain directions, but TP adjustment of ₹ 2.69 crores was made. Thereafter, an order was passed under section 154 of the Act on 23.04.2015, wherein no addition was made in the hands of assessee. The TPO while making transfer pricing adjustment in the hands of assessee had worked out the PLI of assessee by including expenses pertaining to earlier years. 5. The issue which arises in the present appeal is whether prior period expenses were operating cost and the same had to be included or excluded while computing PLI for the year under considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me could be considered while determining PLI for the year under consideration. We find no merit in the issue raised by the Revenue in this regard. The DRP has directed vide para 2.4.1 to exclude earlier year expenses for determining PLI of the year under appeal. 9. We find similar issue arose before the Tribunal in ACIT Vs. Dana India Technical Centre Pvt. Ltd. (supra) and it was held as under:- 12 The learned Authorized Representative for the assessee fairly conceded before us that out of total losses of approximately ₹ 62 lakhs, losses to the tune of about ₹ 35 lakhs relate to earlier year and the balance losses relate to this year. The Mumbai Special Bench of Tribunal in the case of Prakash L. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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