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2015 (7) TMI 478 - DELHI HIGH COURTRelocation expenses including the brokerage fee - whether was capital expenditure or not? - Held that:- It is not disputed that if the figure of ₹ 1,11,73,078/- is duly accounted for and taken into consideration, then the operating margin of the respondent/assessee come to 17.80%, which is higher than the comparable operating margin of 17.09%, taken as a benchmark by the TPO. Submission on behalf of the appellant that the parent company should have shared the burden or a part thereof is not legally tenable. The said expenditure was incurred by the Indian company because of peculiar problems faced by them as a result of which they had to shift the place from where they were operating. The abnormality and difficulty resulting in extra expenditure was not created or caused by the associated enterprise. They were not responsible or liable for the said payments/expenditure. The associated enterprise did not have legal or contractual obligation to make extra or additional payment beyond the true and correct value of the transaction. - Decided against revenue.
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