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| The Tax Publishers2021 TaxPub(DT) 2439 (Del-Trib) : (2021) 087 ITR (Trib) 0209 INCOME TAX ACT, 1961
Section 92B
There was no arrangement, understanding or action in concert, in formal or in writing between assessee and AE, to promote brand of foreign AE and AO had also not returned finding as to how benefit of AMP expenditure incurred by assessee benefited AE. Accordingly, there did not exist international transactions involving AMP expenses by assessee and no TP adjustment was called for.
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Transfer pricing - International transaction - AMP expenses -
Assessee claimed deduction of Advertisement, Marketing and Promotion (AMP) expenses. TPO treated the same as international transaction for benefit of brand owned by AE abroad. Held: There was no arrangement, understanding or action in concert, in formal or in writing between assessee and AE, to promote brand of foreign AE and AO had also not returned finding as to how benefit of AMP expenditure incurred by assessee benefited AE. Accordingly, there did not exist international transactions involving AMP expenses by assessee and no TP adjustment was called for.
Followed:Sony Ericsson Mobile Communications India (P) Ltd. v. CIT ((2015) 374 ITR 118 (Del) : 2015 TaxPub(DT) 1653 (Del-HC))
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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