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2016 (5) TMI 431 - AT - Income TaxTransfer pricing adjustment - advertisement, marketing and sales promotion expenses(AMP expenses) including the mark-up adjustments - Held that:- In the case under consideration, the AO/TPO has not brought anything on record that there existed and agreement, formal or informal, between the assessee and the AE to share/reimburse the AMP expenditure incurred by the assessee in India. In absence of such an agreement the first and primary precondition of treating the transaction in question an international transaction remains un - fulfilled. Conducting FAR analysis or adopting an appropriate method is the second stage of transfer pricing adjustments. The first thing is to find out whether the disputed transaction in is international transaction or not. Without crossing the first threshold second cannot be approached. In the case under consideration, we are of the opinion that AMP expenditure is not an international transaction and therefore we are not inclined to restore back the issue to the file of the AO. Thus the additions made by the AO, including the mark-up adjustments, are directed to be deleted. - Decided in favour of assessee Set of off unabsorbed depreciation - Held that:- Assessee is entitled to claim set off of unabsorbed depreciation against business income of the assessment years under consideration. See Associated Cables case [2013 (10) TMI 1363 - ITAT MUMBAI ]
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