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2016 (3) TMI 581 - ITAT DELHITransfer pricing adjustment of advertisement, marketing and promotion (AMP) expenses - Held that:- We find that the Hon’ble jurisdictional High Court of Delhi in the case of Sony Ericsson Mobile Communication India (P) Ltd. [2015 (3) TMI 580 - DELHI HIGH COURT] has been pleased to hold that marketing and selling expenses like trade discount etc. are not AMP expenses. As there is inappropriate discussion about the precise nature of expenses which have been assailed before us, we consider it expedient to direct the AO to first ascertain the correct nature of such expenses. If these expenses are found to be in the nature of Selling expenses directly in connection with sales, then, they should be removed from the base amount for computing the ALP of AMP expenses. In the otherwise scenario, the AMP expenses, which are not in the nature of Selling expenses incurred directly for sales, should continue to include in the base amount. Under such circumstances, we set aside the impugned order and send the matter back to the file of the TPO/AO for determining the ALP of the international transaction of AMP spend afresh in accordance with the manner laid down by the Hon’ble High Court in Sony Ericson Mobile (supra) - Decided partly in favour of assessee for the statistical purposes.
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