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2015 (6) TMI 590 - HC - Income TaxDisallowance of selling expenses - determination of AMP expenses - Held that:- The decision of the LG Electronics (2013 (6) TMI 217 - ITAT DELHI) and all questions concerning the tax implications and transfer pricing arising therefrom in AMP related matters was considered by the Division Bench judgment of this Court in Sony Ericsson Mobile Communications India Private Limited v. CIT-III (2015 (3) TMI 580 - DELHI HIGH COURT). In the said decision, direct selling expenses such as the one which are the subject matter of these proceedings – including incentives paid to distributors and dealers for services rendered are treated as AMP expenses and, therefore, held to be excluded from the determination of transfer pricing. In the light of this decision, this Court is of the opinion that the main question as to the correctness of the ITAT’s decision with respect to ₹ 54.75 crores does not survive consideration. So far as balance amount of ₹ 3.91 crores is concerned, we notice that the matter was remitted for fresh consideration to the AO who was bound by the decision in Sony (supra).
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