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2017 (12) TMI 348 - AT - Income TaxTransfer pricing adjustment in AMP expenses - Held that:- It is noticed that similar issue cropped up in the assessee’s appeals for preceding years. The Hon'ble jurisdictional High Court in the assessee’s own case for the assessment years 2006-07 to 2010-11 has held that there is no international transaction of AMP expenses and the resultant additions were deleted. DRP contention that the facts and circumstances of the instant year are different inasmuch as the assessee did only ‘distribution’ activity in the year under consideration as against the ‘manufacturing and distribution’ activities done for earlier years does not appear to be correct. It is apparent from the first page of the TPO’s order wherein he has recorded that: ‘the assessee is engaged in manufacturing and trading of soft contact lenses……….’. Similarly, the AO in the impugned order has also recorded in para 2 that the assessee is : ‘engaged in the business of manufacturing lense care solutions and trading of contact lenses and ophthalmic intra ocular lenses and surgical equipments.’ It is, therefore, palpable that the nature of activity carried out by the assessee during the instant year is similar to that done in the earlier years, being that of manufacturing and trading as well. In the absence of any difference in the factual position prevailing in the year under appeal vis-à-vis the earlier years and respectfully following the precedents, we order for the deletion of the addition. Addition on account of transfer pricing adjustment in intra group services - Held that:- Having heard both the sides and perused the relevant material on record, we find that similar issue was raised in the preceding years, albeit, the addition was made directly by the AO as a result of the order of the TPO and there was no enhancement. The assesee challenged it before the appellate authorities. The Hon'ble High court in the assessee’s own case for the preceding five years has decided such issue in favour of the assessee by deleting the additions. Following the view of the Hon'ble High Court, the Tribunal, for the assessment year 2011-12 has directed the deletion of similar addition. As the facts and circumstances of the issue for the year under consideration are mutatis mutandis similar to those of preceding years, respectfully following the precedents, we order for the deletion of addition.
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