Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1761 - HC - Income TaxEntitlement to deduction of advertisement and sales promotion expenses under Section 37(1)- addition made by the Assessing Officer by applying “Bright Line Method” - Held that:- We have examined the Assessment Order and do not find any good ground and reason given therein to treat advertisement and sales promotion expenses as a separate and independent international transaction and not to regard and treat the said activity as a function performed by the respondent-assessee, who was engaged in marketing and distribution. Further, while segregating/debundling and treating advertisement and sales promotion as an independent and separate international transaction, the Assessing Officer did not apportion the operating profit/income as declared and accepted in respect of the international transactions. See Sony Ericsson Mobile Communications India Pvt. Ltd. vs. Commissioner of Income Tax - III, (2015 (3) TMI 580 - DELHI HIGH COURT) and Commissioner of Income Tax vs. Whirlpool of India Ltd., (2015 (12) TMI 1188 - DELHI HIGH COURT)
|