Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 658 - AT - Income TaxTP Adjustment - AMP expenditure - international transaction between the assessee and A.E. for brand promotion in India - whether the AMP expenditure incurred by the assessee can be regarded as an international transaction or not? - HELD THAT:- The identical issue came up for consideration before the Tribunal in assessee’s own case for the Assessment Year 2008-09 [2019 (12) TMI 1483 - ITAT DELHI] the Co-ordinate Bench has held that AMP Expenses incurred by the assessee does not fall within the definition of International Transaction. Further, the Bench has disapproved the determination of ALP by applying BLT Method. Accordingly, the adjustment made on account of AMP expenses was deleted. The similar view has been expressed in Assessee’s own case for the Assessment Year 2009-10, 2010-11 and 2011-12. By following the principles of consistency, since the facts being identical and by following the order made in Assessee’s own case as discussed above, we delete the addition made by the AO by allowing the Ground No. 1 & 2. Addition made in respect of AMP expenditure incurred by the assessee by applying the of Bright Line Test - HELD THAT:- Since by following the Coordinate Bench decisions, we already held that there is no such International Transaction for brand promotion and by following Assesssee’s own case mentioned supra, in our opinion, there is no basis available to the TPO for making such a comparability adjustment under TNMM. Accordingly, by following the principals of consistency, we restore the issue to the file of TPO for bench marking the analysis applying TNMM in accordance with law. In the result, Ground No. 3 of the assessee is allowed for statistical purpose.
|