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2014 (12) TMI 925 - AT - Income TaxTransfer pricing adjustment on AMP expenses – Held that:- Both the parties admit that the DRP has in a very cursory manner passed its order – similar issue has been decided in L.G. Electronics India Private Ltd. Vs. ACIT [2013 (6) TMI 217 - ITAT DELHI] - mere fact that no consideration moved between the associated enterprises for a transaction is not a decisive factor to have influence over its nature - Payment of consideration has not been made as a condition precedent for inclusion of any transaction within the ambit of section 92B - the simple fact that the foreign AE did not pay any consideration to the Indian AE will not take the transaction out of the purview of the transfer pricing provisions, if it is otherwise an international transaction - thus it is palpable that all the three necessary ingredients as culled out from a bare reading of section 92B are fully satisfied - the transfer pricing adjustment in relation to advertisement, marketing and sales promotion expenses incurred by the assessee for creating or improving the marketing intangible for and on behalf of the foreign AE is permissible and earning a mark-up from the Associated Enterprise in respect of AMP expenses incurred for and on behalf of the AE is also allowable - in any event as the claims of the assessee have to be examined based on the facts of the case, the matter is remitted back to the TPO for fresh adjudication – Decided in favour of assessee.
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