assessee. Ld. DR
submitted that establishing the business nexus of
the forex gain/loss was essential before
considering such gain/loss as operational in
nature ... unable to produce
anything before us that forex gain/loss were not
associated with expert earning of the assessee.
Especially so since assessee
assessee. Ld.
DR submitted that establishing the business
nexus of the forex gain/loss was essential
before considering such gain/loss as
operational in nature ... unable to produce anything before us that
forex gain/loss were not associated with
expert earning of the assessee. Especially so
since assessee
risk, capacity
utilization risk and forex risk whereas Acclaris Inc, being an entrepreneur is exposed to
all risks associated with its business operations. Considering
exchange gains and losses in the ratio of exports with associated
enterprises and non associated enterprises. The TPO was of the view that
where ... that for allocating
expenses on man hour basis uniformly to associated enterprises and non-
associated enterprises was possible, only when FAR analysis of both
rendering software development services from its Associated
Enterprise (A.E). The assesee had chosen profit Level Indicator
(PLI) for the purpose of comparison ... Profit on cost % 12.60%
* Excluding other income, for forex plus markup
IT(TP)A No.552/B/15
5
** Excluding interest & forex loss
respect of allocation of cost between the Associate
Enterprise (AE) and Non-AE transactions and the non- consideration of entity level margin ... respect of export incentive and Forex
fluctuation which should be considered as part of OR ( Operating Revenue).
(4) Revenue`s ground No.9 is challenging
that the
ld TPO had treated forex gain as non-operating even though the assessee functionally
bears forex risk. We find that this has been ... Foreign Exchange Risk
Foreign exchange risk means the risk associated with the adverse fluctuation in
the rate of currencies in which entity is dealing. Since
Management/ Business
Support area in which it availed assistance from the associated
enterprise ("AE");
d. By reaching an erroneous conclusion that only allocation ... without prejudice to point #d, the Ld. CIT(A)
has erroneously used forex rate of 1 £ = INR 126.472 to compute
the excess amount invoiced
assessment year 2008-09. The
assessee had provided for loss on forex derivatives amounting to
Rs.2,42,86,625/- for the assessment year ... accounts), exchange gain or loss on derivative
instruments entered to hedge risks associated with foreign currency
fluctuations and on forward exchange contracts, which are intended
assessee in not charging interest
from both the associated enterprises and non
associated enterprises debtors for delay in realization of the export proceeds. In these ... notional interest is to be
charged we have following objections:-A. Forex Risk
As per show cause notice you intent to charge 100 basis point
