Social Media India Ltd. v. Asstt. CIT

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The Tax Publishers2014 TaxPub(DT) 0017 (Hyd-Trib) : (2013) 028 ITR (Trib) 0212 Social Media India Ltd. v. Asstt. CIT INCOME TAX ACT, 1961 --Transfer pricing--Computation of ALPAdjustment for market promotion expenses--Assessee claimed certain amount toward market promotion expenses to its AE, 'A'. Assessee stated that it was incurred towards payment to 'A' who paid certain amount of market promotion of website to third party. TPO took the ALP at 'Nil' on the ground that assessee had not furnished benefit taken by it. *Held:* Not justified. Since it was reimbursement of expenditure the issue of benefit principle would not arise. TPO is, therefore, directed to examine the price paid by assessee and determine the ALP. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2014 TaxPub(DT) 0017 (Hyd-Trib) : (2013) 028 ITR (Trib) 0212

Social Media India Ltd. v. Asstt. CIT

INCOME TAX ACT, 1961

--Transfer pricing--Computation of ALPAdjustment for market promotion expenses--Assessee claimed certain amount toward market promotion expenses to its AE, 'A'. Assessee stated that it was incurred towards payment to 'A' who paid certain amount of market promotion of website to third party. TPO took the ALP at 'Nil' on the ground that assessee had not furnished benefit taken by it. Held: Not justified. Since it was reimbursement of expenditure the issue of benefit principle would not arise. TPO is, therefore, directed to examine the price paid by assessee and determine the ALP.