ITAT upheld the segmentation of the taxpayer's business into...

ITAT upheld the segmentation of the taxpayer's business into Manufacturing and Trading segments for transfer pricing benchmarking purposes, following the coordinate bench's previous ruling. The Tribunal confirmed the application of TNMM over Cost-Plus Method, noting the taxpayer had itself applied TNMM in subsequent years which Revenue accepted. Regarding comparables, ITAT directed the TPO to utilize undisputed comparables from AYs 2012-15 for benchmarking AYs 2009-11, applying the same broad principles but with financial data from the relevant years. The capacity utilization issue was remanded to the TPO for verification. The Tribunal also remitted the custom duty exclusion matter for fresh adjudication, while ruling that foreign exchange gains/losses should be considered as operating revenue. Working capital adjustment was decided in the taxpayer's favor.