2020 (3) TMI 721 - HC - Income Tax

TP Adjustment - ALP of international transaction involving AMP expenses - HELD THAT:- This Court has in similar circumstances in a series of decisions including Maruti Suzuki Ltd. [2015 (12) TMI 634 - DELHI HIGH COURT] Bausch & Lomb Eye care (India) Pvt. Ltd. v. Additional CIT [2015 (12) TMI 1332 - DELHI HIGH COURT] and Honda Siel Power Products Ltd. v. Dy. CIT [2015 (12) TMI 1333 - DELHI HIGH COURT] emphasized the importance of the Revenue having to first discharge the initial burden upon it with regard to showing the existence of an international transaction between the Assessee and the AE.

This Court is of the view that the ITAT was not justified in remanding the matter to the AO/TPO for determining the ALP of the alleged international transaction involving AMP expenses, when in fact, the Revenue was unable to show that there existed an international transaction between the Assessee and its AE in the first place.

The question framed by this Court is, accordingly, answered in the negative, i.e., in favour of the Assessee