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2017 (8) TMI 360 - AT - Income TaxAddition of excess AMP expenditure - TPA - international transaction with its AE or not - advertisement marketing and promotion of the products manufactured by assessee for his business in India - Held that:- On perusal of the order passed by Ld. TPO, it is observed that he did not have benefit of judicial precedents now available, while dealing with the issue of AMP expenses. In some of these decisions AMP expenses has been held to be an international transaction and in some others as not, while in some others the matter has been restored for fresh consideration to be decided in the light of the decision of Sony Ericson (2016 (1) TMI 1234 - DELHI HIGH COURT) where there is an acceptance on behalf of the assessee regarding the AMP expenses being an international transaction. Under such circumstances it would be in the interest of natural justice just and proper, if the impugned issue is set aside to Ld.TPO, for fresh consideration of the question, as to whether there exists an international transaction of AMP expenses. - Grounds raised by the assessee stands allowed for statistical purposes. Determination of ALP of interest paid to AE - LIBOR rate - high degree of compatibility for benchmarking the loan rates on the basis of internal CUP - Held that:- Assessee has adopted “rupee” as currency in which interest is repaid. As Hon’ble court has already held that prime lending rate as applicable in India needs to be applied as the currency in which the loan has to be repaid is Indian currency. We agree with the submission advanced by Ld. Counsel for assessee that assessee is within the range of the prime lending rate considered by ld.TPO in the show cause notice. Respectfully following the decision in the case of Cotton Naturals India Pvt. Ltd (2015 (3) TMI 1031 - DELHI HIGH COURT), we do not find any need of adjustment in respect of the interest paid on FCD’s. Accordingly this ground raised by the assessee stands allowed.
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