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2018 (4) TMI 254 - AT - Income TaxTransfer pricing analysis on account of AMP expenses - Held that:- Following the decision rendered by the coordinate Bench of the Tribunal in taxpayer’s own case, we are of the considered view that in view of the ratio of LG Electronics India Pvt. Ltd. (2013 (6) TMI 217 - ITAT DELHI) rendered by the Special Bench of the Tribunal, expenses qua sales which do not lead to brand promotion cannot be brought within the ambit of AMP expenses for the purpose of determining the value of international transactions. So, in these circumstances, we find no illegality or perversity in the findings returned by the ld. CIT (A). So far as question of making alternative disallowance of AMP expenses u/s 37 (1) of the Act by AO and deleted by the ld. CIT (A) is concerned, there is no dispute that the ld. CIT (A) has granted relief by following the decision of Whirlpool of India Limited (supra) rendered by the Hon’ble Delhi High Court because when the allowability of total amount of advertisement and marketing expenditure is concerned under Chapter X in order to make TP adjustment, this issue cannot be examined by making addition u/s 37 of the Act for the same amount. AO, after due verification, is directed to exclude selling expenses to recompute the ALP of the international transaction.
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