Foreign Exchange Gains Deemed Operating Income, TPO Cannot Unilaterally Invoke Rule 10TA Without Assessee's Option

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....ITAT adjudicated transfer pricing dispute involving foreign exchange gains, holding TPO cannot suo-moto invoke Rule 10TA without assessee's option. The tribunal found foreign exchange gains directly linked to revenue receipts and should be considered operating income. Inconsistent treatment of foreign exchange losses and gains by TPO was noted. Referencing prior Delhi HC precedent, the tribunal upheld assessee's operating profit calculation at 12.89%, allowing the ground raised by assessee and rejecting revenue's contrary position. The revenue representative ultimately concurred with consistent treatment of foreign exchange gains and losses.....