2022 (11) TMI 1321 - ITAT BANGALORE

Adjustment on account of alleged excessive AMP expenditure - HELD THAT:- As relying in assessee’s own case in assessment year [2022 (12) TMI 238 - ITAT BANGALORE] we redirect the Ld.AO/TPO to delete the addition made towards AMP expenses.

Disallowance of Seminars, Conventions and sales promotion expenses - expenses incurred related to doctors in the form of seminars and conventions and sales promotion - HELD THAT:- Similar issue came for consideration before this Tribunal in the case of Astra Zeneca Pharma India Ltd[2023 (1) TMI 1114 - ITAT BANGALORE] A.O. had primarily made disallowance by referring the CBDT Circular No.5/2012 dated 01.08.2012. The A.O. has not critically examined the nature of expenditure incurred by the assessee. In the larger interest of justice, in view of the latest judgment of the Hon’ble Apex Court, which has examined the very same issue, it becomes necessary to examine the exact nature of expenses incurred by the assessee for Doctors from all angles. Therefore, for substantial question and cause, the additional evidence are taken on record. Since the additional evidence is taken on record, necessarily, the matter needs fresh verification by the A.O., especially in the light of the recent judgment of the Hon’ble Supreme Court in the case of M/s. Apex Laboratories Pvt. Ltd. [2022 (2) TMI 1114 - SUPREME COURT] For the aforesaid purpose, the issues raised are allowed for statistical purposes.

Adjustment in respect of IT support services - Companies functinally dissimilar with that of assessee need to be deselected - we direct the AO/TPO to exclude M/s. Infosys Ltd., M/s. L&T Infotech Ltd., M/s. Persistent Systems Ltd. and M/s. Thirdware Solutions Ltd. from the lists of comparables and to recompute the ALP of international transactions with A.E. Ordered accordingly.