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2019 (8) TMI 22 - DELHI HIGH COURTTPA - AMP expenses - International transaction - ‘Bright Line Test’- whether the ITAT erred in remanding the issue of Advertising Marketing Promotion (AMP) expenses to the file of the Transfer Pricing Officer (TPO) for re-determination of the issue whether there is at all an international transaction involving the Assessee and its Associated Enterprise (‘AE’)? - HELD THAT:- The facts of the present case need not be discussed in great detail because essentially, what the ITAT has done is to remand the matter to the TPO, and this by itself does not give rise to any substantial question of law. ITAT has noted that the Assessee is incurring its own selling and distribution expenses and there was no advertisement in the media nor were its products available in the shops. The issues of Reader’s Digest were made available only through mail orders which had to be placed separately. ITAT has pointed out that there exists a distinction between product promotion and brand promotion and that the mechanism used by the Assessee is altogether different for its product promotion. Since the ‘Bright Line Test’ has now been jettisoned by this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax-III [2015 (3) TMI 580 - DELHI HIGH COURT] the ITAT was of the view that the entire exercise should be undertaken afresh by the TPO. - No substantial question of law
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