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2019 (6) TMI 696 - AT - Income TaxTP Adjustment - AMP spend while determining the Arm’s Length Price [ALP] in respect of international transaction - HELD THAT:- We find that the facts are identical to the facts considered by the Tribunal in assessee's own case [2018 (7) TMI 1991 - ITAT DELHI] wherein held Testing the functions performed by the assessee vis a vis AMP expenses incurred by it, we do not find that the assessee has incurred AMP for the benefit of its AE. All the expenditure incurred by the assessee are in relation to its business and its promotion. Moreover, as mentioned elsewhere, the net margin is much higher than the comparables and looking from that angle also, we do not find any merit in the transfer pricing adjustments. It is incorrect to say that the amount of ₹ 73.83 crores received by the assessee by way of credit notes represents the excess price charged by AE which has been credited to the assessee. The business model of the assessee with its AE is such that the AE ensures that the assessee achieves an arms’ length return on sales made by it. Assuming, yet not accepting that the assessee should have been compensated by its AE towards AMP and such compensation as worked out by the TPO is ₹ 69.94 crores, then also no adjustment is required since the assessee has received credit notes worth 74.83 crores and has been suitably compensated. Thus as the assessee company has been suitably compensated by its AEs and, therefore, no further adjustment is required - decided in favour of assessee
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