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| The Tax Publishers2019 TaxPub(DT) 1738 (Del-Trib) INCOME TAX ACT, 1961
Section 92B
In the absence of an agreement, arrangement or understanding between assessee and its AE for sharing AMP expenses or for incurring AMP expenses for the sole benefit of AE, incurrance of AMP expenses could not be termed as an 'international transaction', therefore, TPO had wrongly invoked provisions of Chapter X in this regard.
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Transfer pricing - International transaction - Incurrence of AMP expenses - No related agreement/arrangement between assessee and AE
Assessee incurred advertisement, marketing and promotional (AMP) expenses. TPO treated this as 'international transaction' under section 92B for promotion of brand name owned by AE abroad.Held: In the absence of an agreement, arrangement or understanding between assessee and its AE for sharing AMP expenses or for incurring AMP expenses for the sole benefit of AE, incurrence of AMP expenses could not be termed as an 'international transaction', therefore, TPO had wrongly invoked provisions of Chapter X in this regard.
Relied:Bausch & Lomb Eyecare (India) (P) Ltd. v. Addl. CIT (2016) 381 ITR 227 (Del) : 2015 TaxPub(DT) 5476 (Del-HC) (Del) and Sony Ericsson (2015) 374 ITR 118 (Del) : 2015 TaxPub(DT) 1653 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12 to 2013-14
INCOME TAX ACT, 1961
Section 92B, Expln.
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