Forex Gains/Losses Non-Operative in Transfer Pricing; Safe Harbor Rules Inapplicable; Appeal Partly Allowed.

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....Foreign exchange gain/loss treated as non-operative for assessee and comparables due to risk mitigation by associated enterprises. Safe Harbor Rules not applicable as assessee not determined eligible. Inconsistent approach by TPO in treating forex gain/loss as operating for comparables rejected. Case laws distinguishable due to risk borne by assessee. Zenith Computers excluded as persistent loss-making company. Whirlpool and Penguin excluded as functionally dissimilar from mobile phone manufacturing. For CSD segment, Infobeans Technologies, Persistent Systems, L&T Infotech, and Mindtree excluded due to functional dissimilarity or lack of segmental data. Dividend distribution tax payable at rate u/s 115O, not DTAA rate, unless DTAA expressly extends benefit to domestic company. Appeal partly allowed.....