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2014 (3) TMI 803 - AT - Income TaxAddition made on account of Transfer pricing adjustment towards AMP expenses – Held that:- A sum of ₹ 54.75 crore was incurred on `Incentive’ which was passed on to the subscriber who actually got made bookings for their customers through the network of Amadeus group - But for the payment of incentive, the subscribers had no interest in dealing with the assessee - As the revenue generated from bookings done by the subscribers is the major source of the assessee’s income from its A.E, such `Incentive’ to the subscribers cannot be viewed as anything other than `Selling expense’ which is liable to excluded from the total AMP expenses – Relying upon LG Electronics India Pvt. Ltd. Vs ACIT [2013 (6) TMI 217 - ITAT DELHI] - the discount and incentive passed by the assessee to its dealers and distributors on effecting the sales was required to be excluded from the total AMP expenses for the purposes of determination of ALP in respect of AMP expenses – thus, the incentive amounting to ₹ 54.75 crore should be deducted from total AMP expenses of ₹ 58.66 crores and the remaining amount of ₹ 3.91 crores should be considered by the Assessing Officer for a fresh determination of its ALP – Decided partly in favour of Assessee.
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