Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 130 - AT - Income TaxTransfer pricing adjustment - Advertising, Marketing and Promotion (AMP) expenses - selection of comparable - Held that:- TPO/AO have followed the Special bench decision in LG Electronics (2013 (6) TMI 217 - ITAT DELHI) for determining the ALP of AMP expenses. There is no discussion about the AMP functions carried out by the assessee or comparables. Now since the Special bench order has been partly modified by the Hon’ble Delhi High Court, including the non-applicability of the bright line test, and no material has been placed on record by the ld. AR to, firstly, demonstrate the AMP functions carried out by the assessee and then, to compare such functions with those done by comparables, this issue cannot be decided at our end. Under such circumstances, we set aside the impugned order and remit the matter to the file of the AO/TPO for deciding it afresh as per law. In this fresh exercise, the TPO will follow the parts of the judgment in Sony Ericson (2015 (3) TMI 580 - DELHI HIGH COURT) as are common to both Manufacturers and Distributors; apply the parts of the judgment as are applicable to a `Manufacturer’; and ignore the parts of the judgment which pertain exclusively to a `Distributor’. Needless to say, the assessee will be allowed a reasonable opportunity of hearing in such fresh proceedings. - Decided in favour of assessee for statistical purposes.
|