Foreign Exchange fluctuation gain / loss should be treated as operating in profit margin computation

Global E-Business Operations Pvt. Ltd. Vs ACIT (ITAT Bangalore) Conclusion: Foreign exchange fluctuation gain/loss should be treated as operating profit/loss in nature while computing the profit margin of the assessee as well as of the comparable companies. Held: Assessee was a company belonging to M/s. HP group. It was engaged in ITES services. It undertook HP’s worldwide accounting and transaction processing work, provision of back office operation and customer support services to various associated enterprises.  It adopted TNMM method to benchmark his transactions and the profit level in...