TMI Blog2020 (1) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... see had incurred such an expenditure; that the said expenditure was incurred at the local level to ensure the availability and visibility of the products - HELD THAT:- As gone through the order of the Hon ble High Court wherein it was held that merely because there is an incidental benefit to Whirlpool USA, it cannot be said that the AMP expenses incurred by the assessee were for promoting the brand of Whirlpool USA. It was further held that the fact that somebody other than the assessee is also benefited by the expenditure, should not come in the way of an expenditure being allowed by way of deduction under section 10 (2) (xv) of the Income Tax Act, 1922 and therefore the Hon ble High Court held the issue in favour of the assessee. We also find from the orders in assessee s own case for assessment years 2009-10 to 2014-15 that the Tribunal followed the above decision of the Hon ble High Court. Disallowance of R D expenses, addition on the basis of Form 26AS and disallowance on the basis of an AIR information - HELD THAT:- DRP directed the Assessing Officer to allow the R D expenditure not eligible for weighted deduction under section 35(2AB) as deduction u/s 37. We do not fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We therefore set aside the issue to the file of the learned Assessing Officer to carry out such an exercise of verification. Disallowance towards foreign tax credit - HELD THAT:- Set aside this issue to the file of the Assessing Officer with a direction to the assessee to produce the requisite certificate before the learned Assessing Officer, on which the learned Assessing Officer will take a fresh view after verification. - ITA No. 9191/Del/2019 - - - Dated:- 20-1-2020 - Shri R.K. Panda, Accountant Member And Shri K. Narasimha Chary, Judicial Member For the Assessee : Sh. Neeraj Jain, Advocate, Sh. RamitKatiyal, Advocate For the Revenue : Sh. Sunil Kumar, CIT/DR ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the order dated 25/10/2019 passed under section 143(3) read with section 144C (13) of the Income Tax Act, 1961 (for short the Act ), for the assessment year 2015-16 pursuant to the directions given on 25/9/2019 by the Ld. Dispute Resolution Panel (DRP)-1, New Delhi ( Ld. DRP ), M/s Whirlpool of India Ltd ( assessee ) filed this appeal. 2. Brief fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me as per 26AS to the tune of ₹ 5,14,537/-, purchase and sale of vehicles to the tune of ₹ 15,37,130/-, insurance premium payment to the tune of ₹ 18,640/-and daughter marriage fund to the tune of ₹ 35 Lacs. 5. Assessee is therefore before us in this appeal challenging the additions. Now we shall proceed to deal with the grievance of the assessee in respect of each addition. 6. In respect of the transfer pricing adjustment of ₹ 1,17,75,930/-, case of the assessee has been that the Ld. TPO did not dispute the benchmarking analysis in respect of the international transaction undertaken by the assessee and accepted those to be at arm s length price. Ld. TPO, however, undertook benchmarking analysis of the Advertisement, Marketing and Sales Promotion (AMP) expenses incurred by the assessee for the products having the brand name Whirlpool . According to the assessee the AMP expenses were incurred by it on its own discretion without any reference to the overseas Associated Enterprises ( AEs ) and all such expenses were incurred for its own business in order to cattle to the local market needs. On this groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red wholly and exclusively for the purpose of the business of assessee alone. 11. It is the submission on behalf of the assessee by the Ld. AR that this issue has also been squarely covered by the decision reported in 381 ITR 154 of the Hon ble jurisdictional High Court in assessee s own case for the assessment year 2008-09. He submitted that the Hon ble High Court deleted the similar edition and following the same the Tribunal in assessee s own case for the assessment years 2009-10 to 2014-15 deleted the addition. Ld. DR admits this factual position. 12. We have gone through the order of the Hon ble High Court wherein it was held that merely because there is an incidental benefit to Whirlpool USA, it cannot be said that the AMP expenses incurred by the assessee were for promoting the brand of Whirlpool USA. It was further held that the fact that somebody other than the assessee is also benefited by the expenditure, should not come in the way of an expenditure being allowed by way of deduction under section 10 (2) (xv) of the Income Tax Act, 1922 and therefore the Hon ble High Court held the issue in favour of the assessee. We also find from the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that in assessee s own case for the assessment years 2010-11 to 2014-15, the matter was remitted to the file of the Assessing Officer for reconciliation of the differences and now the assessee is ready with the reconciliation statement to produce before the Assessing Officer if a similar direction is given. 17. We have gone through the record in the light of the submissions made on either side and from the orders of the Tribunal in assessee s own case for assessment year 2010-11 to 2014-15 we find that on the assessee reporting to have possessing all the relevant information to reconcile the difference between the income recorded in the books of accounts vis a vis form 26AS, the Tribunal took a view to direct the Assessing Officer to tally the data base of Revenue in the light of details to be filed by the assessee. In consonance with the view taken by the Tribunal for the earlier assessment years on this issue, we set aside the issue to the file of the Assessing Officer for a similar exercise and the assessee is directed to produce the relevant documents before the Assessing Officer. Ground No. 6 is therefore, allowed for statistical purpose. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd circumstances involved in this matter in the light of the decision of the Hon ble jurisdictional High Court in the case of CIT vs. Text Hundred India Private Limitedreported in 39 CTR 263 we are of the considered opinion that inasmuch as the documents now sought to be produced by the assessee would throw some light on the issue, we allow this application under rule 29 of the Income Tax (appellate Tribunal) Rules, 1963 and receive the documents. Since the verification of these documents could conveniently be done at the end of the Assessing Officer, we set aside the issue to the file of the Assessing Officer to consider these documents and to take a view afresh. Thus the ground No. 8 is, accordingly, allowed for statistical purpose. 21. Ground No. 9 relating the disallowance of ₹ 35 Lacs being the expenditure on account of the expenditure amount paid to the employees of the assessee at the time of marriage of their daughters. It is the submission of the Ld. AR that considering the location and eligibility of the employees, the assessee has been making a provision in the books of accounts and such provision is offered for ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the record that the assessee had claimed foreign tax credit of ₹ 98,13,926/-in respect of taxes withheld by Whirlpool SA and Whirlpool Polska SP Zoo. According to the Ld. AR the assessee had furnished a statement of reconciliation in respect of the tax deducted by the foreign group entities and the credit claimed in the tax return; that the learned Assessing Officer required the assessee to furnish the certificate in respect of tax withheld by the foreign group entities; that since the assessee was in the process of obtaining the certificate from the associated enterprises, the same could not be furnished before the Assessing Officer during the course of assessment proceedings; and that the learned Assessing Officer disallowed the claim of the assessee towards foreign tax credit in the absence of such a certificate. Assessee submits that now they are ready to furnish such certificate before the Assessing Officer. 26. Ld. AR further brought to our notice that the Tribunal in assessee s own case for the assessment year 2013-14 in ITA No. 8272/Del/2018 set aside the matter to the file of the learned Assessing Officer for allowing the tax credit on verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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