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2017 (12) TMI 1773 - ITAT CHANDIGARHRectification of mistake - TP Adjustment - AMP Expenditure - JV Agreement was not produced - joint venture company i.e. the assessee, has been entrusted with the responsibility to market the goods in India and which is contrary to the findings of the Hon'ble ITAT that obligation to incur the expenditure has been presumed to exist only on the basis of the quantum of expenditure - HELD THAT:- Basis for allowing the appeal by the I.T.A.T. and basis for holding that the AMP spend by the assessee was not an international transaction in the first place, was on account of the fact that the Revenue had failed to point out the existence of any arrangement or agreement between the assessee and its associated enterprise reflecting the entrustment of the liability/responsibility to carry out brand promotion expenses on behalf of the parent AE by the assessee. The clauses now referred to by the Revenue in support of its contention that they reflect the entrustment of the responsibility of carrying out brand promotion to the assessee by AE, we find are of no relevance. Clause No.21 of the JV referred to by the Revenue only states that the assessee company would market the licensed products which are manufactured in India. This is just a normal sales promotion responsibility for the goods manufactured by the assessee, entrusted to the assessee. It cannot by any stretch of logic be read to mean that the expenses for promoting the brand of AE was entrusted to the assessee. Similarly, the trade mark agreement at clause 22 of the Joint Venture agreement referred to by the Revenue in its Miscellaneous Application merely states that the trade mark name and logo of Widex is the exclusive property of the parent AE and separate agreement would be executed between the parties to ensure that it remains so in future also. We fail to understand how this throws any light on the entrustment of the responsibility to carry out brand promotion on behalf of the AE by the assessee, nor has the same been clarified before us - no error in the order of the I.T.A.T. - Decided against Revenue.
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