Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 732 - AT - Income TaxTP Adjustment - AMP expenditure - International transaction - HELD THAT:- In the instant case, there is not an iota of material on the file apart from applying the BLT and by taking the view that the taxpayer has incurred huge AMP/sales expenses to the tune of 6.42%, no cogent material is there to treat the incurring of AMP expenses as international transaction more particularly when basis for treating the AMP expenses as international transaction i.e. BLT is not a legally sustainable method. Undisputedly, there is no change in the FAR of the taxpayer company since AY 2010-11 and the taxpayer is performing same functions. In AY 2010-11, the coordinate Bench of the Tribunal vide [2019 (4) TMI 1774 - ITAT DELHI] held that the Revenue has failed to prove that AMP expenditure by the taxpayer is a separate international transaction. In view of what has been discussed above and following the order passed by the Tribunal in taxpayer’s own case in AY 2010-11, when there is no international transaction no separate benchmarking qua AMP expenditure can be made, hence liable to be deleted. In view of what has been discussed above, the appeal filed by the taxpayer is allowed.
|