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2017 (11) TMI 54 - AT - Income TaxDisallowance on account of lease premium - nature of expenditure - revenue or capital expenditure - Held that:- As the issue under consideration is similar to AY 2010-11 and the ld. DR did not bring any contrary decision in this regard, following the decision of coordinate bench in AY 2010-11 wherein 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 uphold the order of the CIT(A) in deleting the disallowance made by the AO towards lease premium paid by the assessee following the order of ITAT in AY 2010- 11 and dismiss the grounds raised by the revenue. Transfer pricing adjustment with respect to reimbursements received from its Associated Enterprises (AEs') - Held that:- 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. Accordingly, ground raised in C.O. is allowed for statistical purposes.
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