Payment of Arbitration Award cannot form part of Cost Base for Margin Calculation

Hyundai Rotem Company Vs. ACIT (ITAT Delhi) Out of the international transactions, the taxpayer reported to have spent an amount of Rs. 96,71,69,164/- on account of payment of arbitral award on behalf of the AE and the same have been reimbursed by the AE to the taxpayer. This transaction has not been bench marked by the taxpayer on the ground that it is a cost to cost reimbursement. Major component of this transaction is reimbursement made by the AE to the tune of Rs. 95,50,32,150/- being the payment made by the taxpayer on behalf of its Associated Enterprises (AE) on account of arbitral awa...