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2023 (3) TMI 676 - HC - Income TaxTP Adjustment - upward adjustment on account of ALP of marketing intangible created by the assessee for the associate enterprises - HELD THAT:- After examining the facts, the Tribunal found that the revenue had only assumed that the assessee had promoted the brand of the AE by incurring AMP expenditure in India thereby warranting any compensation. On facts, it was found that the assessee had not paid any royalty or trade-mark fee to its Associated Enterprises and had been benefited by the excess premium return in the same price of goods.Tribunal found that AMP expenditure is duly factored into the said pricing fixed by the Associated Enterprises. Tribunal found that the international transactions with the Associated Enterprises of purchase of raw materials, purchase of finished goods, sale of finished goods and recovery of expenses have been duly accepted to be at arm’s length. Selling expenses which were sought to be included as part of AMP expenditure by the TPO and the DRP - Tribunal after thoroughly examining the factual position found that these expenses are purely related to products of the assessee and not for any brand. Further, it found that the total expenditure towards AMP and selling expenditure had duly bifurcated the same by identifying at the time of incurrence itself, whether the said expenditure constitutes AMP expenditure or selling expenditure. This bifurcation of expenditure was ignored by the revenue and this has been rightly pointed out by the learned Tribunal in the impugned order. Thus, we are fully satisfied that the Tribunal, on facts, was convinced with the case of the assessee and granted relief and in the absence of any perversity in the order passed by the learned Tribunal, we find no grounds to interfere with the same. Decided against the revenue.
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