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2013 (9) TMI 264 - ITAT DELHITransfer pricing - ALP - Advertisement, marketing and business promotion adjustment for Transfer pricing adjustment - AMP expenditure incurred in excess of the mean "expenditure incurred on AMP upon sales" of comparable companies - The TPO determined the Bright Light AMP expense at 84% on the basis of comparables selected for the purpose of bench marking the AMP expenditure incurred by the assessee viz-a-viz 12.55% AMP expenses of the assessee Held that:- Reliance has been placed upon the judgment in the case of L.G. Electronics India (P.) Ltd. [2013 (5) TMI 633 - ITAT DELHI] , wherein it has been held that TPO restricted the comparable cases to only two without discussing as to how other cases cited by the assessee were not comparable. A bald comparison with the ratio of AMP expenses to sales of the comparables cases without giving effect to the relevant factors as discussed above, cannot produce correct result. As the TPO has neither properly considered the request of the assessee for inclusion of some other comparable cases nor examined the effect of the above discussed relevant factors on the question of determination of the cost/value of international transaction, the ends of justice will meet adequately if the order of the TPO and that of the AO giving effect to such order is set aside and the matter is restored to the file of the TPO for determining the cost/value of the international transaction and the consequent ALP afresh as per law In the present case also, matter is restored to the file of the TPO for determining the cost/value of the international transaction and the consequent Arm's Length Price afresh as per law Rate of depreciation to be applicable on UPS and Printer - Depreciation on UPS and printer from 60 percent to 15 percent, by treating the same as Plant and Machinery without appreciating that UPS and printer is "integral part of the computer system" Held that:- Reliance has been placed upon the judgment in the case of Orient Ceramics and Inds. Ltd [2011 (1) TMI 26 - DELHI HIGH COURT], wherein it has been held that depreciation @ 60% on such items shall be allowed In the instant case also, depreciation allowed @ 60% - Decided in favor of Assessee.
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