AMP spend application of Bright Line Test (BLT) as a rule

Facts:

Assessee a resident, was trading and manufacturing of computer hardware, peripherals, notebooks etc. Noticing that they had received reimbursement of some part of their defrayed advertising expenses, the TPO proceeded on the notion that the substantial advertising spend was for the brand promotion of their Associated Enterprises (AE's). Applying BLT - bright line test without existence of any real transaction made additions to profits. DRP gave part relief. On higher appeal -

Held in favour of the assessee based on earlier year case, application of BLT blindly without adducing evidence was incorrect. BLT is not a conclusive tool for AMP spend, thus held in other similar TP assessments was upheld.

Applied:

Own case - A.Y. 2017-18 - IT(TP)A No.843/Bang/2022 Order, dated 31-1-2023

Maruti Suzuki India Ltd. (2015) 381 ITR 117 (Del) : 2015 TaxPub(DT) 5219 (Del-HC)

Sony Ericsson Mobile Communications India (P) Ltd v. CIT (2015) 374 ITR 118 (Del) : 2015 TaxPub(DT) 1653 (Del-HC)

Whirlpool of India Ltd v. DCIT (2015) 381 ITR 154 (Del) : 2015 TaxPub(DT) 5343 (Del-HC)

Case: Acer India (P) Ltd. v. DCIT 2023 TaxPub(DT) 1110 (Bang-Trib)