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2022 (12) TMI 238 - AT - Income Tax
TP Adjustment - addition made towards AMP expenses - HELD THAT:- It is not the case of the revenue that assessee is mandated to incur such expenditure as per any agreement between the assessee and a. It is also not disputed that these expenditures incurred by assessee or towards its own business promotion in India as assessee is a distributor further from the transfer pricing study report we note that assessee operates in limited risk environment in respect of the distribution and marketing segment. As per the TP study the description of activities carried on by the assessee that has been allegedly characterised by the Ld.TPO towards the promotion of brand.
On an identical situation, Coordinate Bench of this Tribunal in case of Essilor India Pvt.Ltd [2016 (3) TMI 959 - ITAT BANGALORE] to hold as no basis to hold that there was in fact an international transaction in the matter of incurring of AMP expenses by the Assessee. No exercise of determining the ALP of the AMP expenses by comparing the expenses incurred by the Assessee with comparable companies. No reasons whatsoever to take a different view. Respectfully following the above view, we redirect the Ld.AO/TPO to delete the addition made towards AMP expenses.
Comparable selection - Persistent Systems Ltd. and L&T Infotech Ltd. - HELD THAT:- As in assessee’s own case for preceding assessment year [2020 (11) TMI 1082 - ITAT BANGALORE] we direct the Ld.AO/TPO to exclude Persistent Systems Ltd and L&T Infotech Ltd from the final list.