2025 (7) TMI 590

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to the directions dated 01.03.2021 issued by the Dispute Resolution Panel (hereinafter referred to as 'DRP'), Bengaluru, for AY 2016-17. 2. At the outset, the Ld.Counsel for the assessee submitted that there is a delay of '10' days in filing of this appeal and the reason for cause of delay is mainly due to the lockdown imposed by the Government on account of spread of Covid-19 pandemic.  Having gone through the contents of the affidavit, we find that there was a reasonable cause for delay and hence, we condone the delay of '10' days and proceed to adjudicate the appeal on merits. 3. The brief facts of the case are that the assessee-company was incorporated on 21.11.1997 with its parent company in South Korea. The assessee is enga....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....2021. Thereafter, the AO passed the final assessment order dated 30.03.3021 making downward adjustment of Rs. 3,39,28,213/-, which was rectified by passing rectification order on 23.07.2021 in which the downward adjustment was reduced to Rs. 2,52,45,912/-. Aggrieved by this order, the assessee is now in appeal before us. 5. At the time of hearing, the Ld. AR for the assessee pointed out that the primary grievance in this appeal relates to the computation of PLI of the assessee. According to him, the Ld. DRP/TPO erred in holding that, (a) the foreign exchange fluctuation loss was operative in nature without appreciating the assessee's claim was that the forex loss was extraordinary and thus ought to be treated as non-operative in nature ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and this Tribunal had remitted the matter back to the AO/TPO for de novo consideration and thus urged us to do the same. Per contra, the Ld. CIT, DR relied upon the order of the lower authorities and urged us not to give a second innings to the assessee.  7. Heard both the parties. We find that this issue is no longer res- integra. It is noticed by us that, this identical issue had later on come up for consideration in assessee's own case for AY 2014-15 in IT(TP) No.66/Chny/2018 dated 12.06.2024 and same line of argument was put forth by the assessee. Having considered the nature of business of the assessee, this Tribunal is noted to have held that foreign exchange loss was not an extraordinary item and therefore no adjustment was w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... dated 12.06.2024 wherein it was held as under:- "10. The assessee also seeks adjustment of product development expenses. The Ld. TPO has treated the same as operating in nature. The Ld. AR has stated that product development expenses are not incurred for this year. The expenses is incurred for extending support services rendered during the development of new model car by HMIL, the benefit of which may or may not occur and would not have any direct link with the revenue of this year. It has been submitted that this adjustment has been granted by Ld. TPO in AY 2012-13. Accepting the plea of Ld. AR, we direct Ld. TPO to consider the same. The assessee is directed to provide the data to substantiate the same." 10. According to the ....