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2015 (11) TMI 1197 - AT - Income TaxAdjustment in respect of Advertisement/Marketing Promotional (AMP) and selling expenses - TPA - TPO concludeD that the assessee had incurred non-routine AMP expenses contributed in the brand development of the assessee’s parent company - Held that:- The assessee has a prima facie good case on merit in the appeals for both the years under consideration. The contention put forth by the ld. Counsel for the assessee that in view of the decision in the case of ‘Sony Ericsson Mobile Communications India Private Limited and others’ (2015 (3) TMI 580 - DELHI HIGH COURT), the adjustment made on AMP expenses by the authorities below, needs to be deleted as have not been successfully replied by the department. Also since the recipient would have already discharged their tax liability on the amounts, the assessee cannot be treated as an assessee in default and that tax payment by the recipient ought to be regarded as sufficient compliance for the purposes of the provisions of section 40(a)(ia) of the Act and no disallowance is warranted in the hands of the assessee. The existence of a prima facie good case in its favour leads to the balance of convenience tilting in favour of the assessee. Therefore, finding that the assessee is likely to suffer substantial mischief, damage and injury otherwise the assessee’s request for stay for both the years i.e. the years under consideration is accepted. The recovery for both the years shall remain stayed for six months from today, or till the disposal of the appeals, whichever is earlier.
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