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2018 (12) TMI 1264 - AT - Income TaxTPA - AMP expenditure - whether Advertisement and marketing expenditure incurred by the appellant assessee can be treated as international transaction and made subject matter of adjustment in arms length pricing? - Held that:- TPO has used the same comparables as that of the assessee and the TPO chose to examine the international transaction, if any, by applying BLT, knowing fully well that the operating margin of the assessee is better than those of the comparables. It would not be proper to ask the TPO to rework the AMP expenses into that which was incurred for building the brand value of the foreign AE and that the same was incurred wholly or exclusively of the benefit of the brand building of the AE. Moreover, in our considered opinion, multiple opportunities are not permissible to any authority to experiment in setting up case as held in the case of Rajesh Babubhai Damania [2000 (6) TMI 5 - GUJARAT HIGH COURT]. The benefit, if any, gone to the AE can only be termed as incidental benefit. Merely because there is an incidental benefit to AE, Sony Company, it cannot be stated that the AMP expenses incurred by the assessee was for promoting the brand Sony Japan. Since the operating profit margin of the appellant company is better than those of the comparables, it can be safely concluded that the assessee has been suitably remunerated and no further adjustment is required to bench mark the AMP expenses. Following the guidelines listed by the Hon'ble High Court in the case of Sony Ericson Mobile Communication India Private Limited [2015 (3) TMI 580 - DELHI HIGH COURT], the grounds raised by the assessee are allowed.
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