Foreign exchange gains/losses in cost-plus cross-border supplies treated as operating for TP; adjustment and comparables dispute set aside.

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....Foreign exchange fluctuation arising from international transactions for provision of specified products/services under a cost-plus arrangement was held to be operating in nature, since the gain/loss directly emanated from trading items linked to the controlled transactions; accordingly, treating the foreign exchange loss as non-operating cost for TP computation was impermissible and the adjustment on that basis was set aside. On benchmarking, the challenge to the price applied/proposed in an uncontrolled transaction and the related selection/exclusion of comparables was decided in favour of the assessee, resulting in deletion/relief from the impugned TP adjustments. - HC....