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TMI Blog2019 (10) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... rders of both the authorities below are set aside and the Assessing Officer is directed to exclude the foreign exchange fluctuation from operating income / expenditure. Adjustment of working capital for determining the arm's length price - CIT(Appeals) confirmed the order of the Assessing Officer on the ground that the assessee has not filed any material to establish that it is operating in an environment of negative working capital - HELD THAT:- From the material available on record it appears that the assessee has filed the material to indicate / establish the working capital involved in the functioning of the assessee. In those circumstances, this Tribunal is of the considered opinion that it may not be correct to say that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -8, Chennai, dated 28.06.2018 and pertains to assessment year 2014-15. 2. The first issue arises for consideration in this appeal is exclusion of loss on foreign exchange fluctuation from the operating expenditure. 3. Shri Raghunathan.S., the Ld.counsel for the assessee, submitted that the very issue was considered by this Tribunal in Infac India Pvt. Ltd. v. DCIT in IT(TP)A No.27/Chny/2018 dated 05.10.2018. This Tribunal, after examining the material available on record, found that the profit or loss due to foreign exchange fluctuation has to be excluded from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of this Tribunal in the case of Doosan Power Systems India Pvt. Ltd. v. DCIT in I.T.A. No.581/Mds/2016 dated 14.12.2016, the Ld.counsel submitted that the working capital adjustment is mandated under the scheme of the Income-tax Act, therefore, such adjustment is necessary while computing the Profit Level Indicator. The Ld.counsel further submitted that necessary working was filed before the Assessing Officer as well as the CIT(Appeals). However, both the authorities below have not considered on the ground that it was not available. Therefore, the Ld.counsel submitted that the matter may be remitted back to the file of the Assessing Officer for reconsideration. 7. We heard Dr. M. Srinivasa Rao, the Ld. D.R. also. The CIT(Appeals) co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered the same. Therefore, the Ld.counsel submitted that the matter may be remitted back to CIT(Appeals) for disposing of the ground raised by the assessee. 10. We heard Dr. M. Srinivasa Rao, the Ld. D.R. also. Admittedly, the ground raised by the assessee with regard to the sum of ₹1,72,63,307/- in respect of business income was not disposed by the CIT(Appeals). When the assessee has raised a specific ground, this Tribunal is of the considered opinion that the CIT(Appeals) is expected to dispose the same in accordance with law. Since such an exercise was not done by the CIT(Appeals), this Tribunal is of the considered opinion that the matter has to be considered by the CIT(Appeals). Accordingly, the issue of ₹1,72,63,30 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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