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2018 (6) TMI 506 - ITAT HYDERABADLease rent payment - nature of expenditure - revenue expenditure or capital expenditure - Held that:- Following the judgement in assessee’s own case for AY 2011-12 [2017 (11) TMI 54 - ITAT HYDERABAD] wherein as held that the assessee acquired the land on lease for 33 years, the capital structure did not undergo any change. The assessee has merely acquired the facility to carry on business profitably by paying nominal lease rent. The lease rent paid by the assessee was allowable as revenue expenditure we dismissed the grounds raised by the revenue. Transfer pricing adjustment on account of reimbursement of expenses received from Associated Enterprises - Held that:- The cross objections raised by the assessee in this AY are materially identical to that of AY 2011-12 wherein as held the concept of utilizing the expertise with other independent companies are not heard of in the market nor encouraged in the normal business. Since there are no comparable cases in the market, and also it is the business decision of the assessee to share the employee cost with other sister concerns on cost to cost basis. Accordingly, the addition of markup should be deleted. For the limited purpose of verification of transaction whether the transactions are routed through books, it is remitted to the AO. - Decided in favour of assessee for statistical purposes.
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