2015 (7) TMI 478

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....61,828/- with US associate enterprise. The respondent applied Transactional Net Margin Method as the most appropriate with Operating Profit/Total Cost as the Profit Level Indicator for benchmarking international transactions. Respondent claimed that their Operating Profit/Operation Cost was 8.39%, which was higher than the weighted average of operating profit margin of comparable companies of 7.93%. The Transfer Pricing Officer rejected some of the comparables as not being acceptable and included nine companies out of his own list alongwith eleven companies in the list of comparables submitted by the assessee. On the basis of the computation made by him, he held that adjustment of Rs. 1,38,85,561/- was required. Dispute Resolution Panel al....

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....as recorded that there was dip in turnover/supply of software during the last quarter from 01.01.2006 till 31.03.2006. In the last quarter, the capacity utilization fell to 72% from normal capacity utilization of 87% to 94% during the Financial Year ending 31.12.2005. 5. On the question whether the relocation expenses including the brokerage fee of Rs. 32,88,224/- was capital expenditure or not, the Tribunal has recorded the following findings:- In this regard, it has been submitted that the relocation expenses were incurred by the assessee on shifting of its office from Safdarjung Enclave to Mohan Coopeartive Industrial Estate due to drive of MCD for sealing of premises. By shifting the operations to a new premises situated in a commerc....

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....ntention that the shifting could have been done over a weekend time.   4.10 Another TPO contention is that the assessee had already paid additional rent for two months for its new premises. This fact defeats the assessee's argument that its work suffered due to the sealing drive. In this regard, assessee has submitted that even thought the assessee had leased the new premises and paid rent for the months of February and March, it could not have commenced its commercial operations from such premises, till the time necessary infrastructure in the form of fixtures, power supply etc. was established. Further, before the operations of the assessee could be shifted from one premises to another, the necessary equipments and devices had to b....