TMI Blog2023 (3) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... s and had been benefited by the excess premium return in the same price of goods.Tribunal found that AMP expenditure is duly factored into the said pricing fixed by the Associated Enterprises. Tribunal found that the international transactions with the Associated Enterprises of purchase of raw materials, purchase of finished goods, sale of finished goods and recovery of expenses have been duly accepted to be at arm s length. Selling expenses which were sought to be included as part of AMP expenditure by the TPO and the DRP - Tribunal after thoroughly examining the factual position found that these expenses are purely related to products of the assessee and not for any brand. Further, it found that the total expenditure towards AMP and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the associate enterprises ? We have heard Ms. Smita Das De, learned standing counsel for the appellant/revenue and Mr. Paras S. Salva, learned senior counsel assisted by Mr. Pratik Poddar and Mr. A. K. Dey, learned advocates for the respondent/assessee. The Dispute Resolution Panel (DRP) had affirmed the decision taken by the Transfer Pricing Officer (TPO) in determining the arm s length price for Advertisement, Marketing and Promotions (AMP) expenditure treating the same as an international transaction and the directions were issued under Section 144C(5) of the Income Tax Act, 1961 dated 8th December, 2016. Even before the DRP, the appellant had taken a preliminary objection stating that the transaction was not an international transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal held that the revenue has taken an incorrect stand that the assessee is not a manufacturer at all and only a distributor simplicitor. Taking note of this factual position, the contention raised by the revenue before the Tribunal was rejected. The learned Tribunal referred to the decision of its co-ordinate bench in the case of Philips India Ltd. vs. ACIT in ITA No.2489/Kol/2017 dated 4th April, 2018 for assessment year 2013-14. The facts of the said case were more or less identical and the Tribunal apart from recording a factual finding that the assessee is a manufacturer, also placed reliance on the co-ordinate bench decision in the case of Philips India which had attained finality. Thus, we are of the view that in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same price of goods. Furthermore, the Tribunal found that AMP expenditure is duly factored into the said pricing fixed by the Associated Enterprises. Furthermore, the Tribunal found that the international transactions with the Associated Enterprises of purchase of raw materials, purchase of finished goods, sale of finished goods and recovery of expenses have been duly accepted to be at arm s length. The next aspect dealt with by the Tribunal was regarding the selling expenses which were sought to be included as part of AMP expenditure by the TPO and the DRP. The Tribunal after thoroughly examining the factual position found that these expenses are purely related to products of the assessee and not for any brand. Further, it found tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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