TMI Blog2023 (1) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - I.T.A. No. 2014/DEL/2017 - - - Dated:- 4-1-2023 - DR. B. R. R. KUMAR, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR U.S., JUDICIAL MEMBER For the Appellant : Shri Tarandeep Singh, Advocate; For the Respondent : Shri Rajesh Kumar, [CIT] - D. R.; ORDER PER YOGESH KUMAR U.S., JM The present appeal is preferred by the assessee for the Assessment Year 2012-13 against the final assessment order dated 31/01/2017 passed by the DCIT, Circle-27 (2) New Delhi u/s 143(3) r/w Section 144C (4) of Income tax Act, 1961,( the Act for short). 2. The assessee has raised t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ective adjustment on grounds of difference in arm's length pricing of the international transactions of any tax payer; 3.2. not appreciating the fact that application of BLT is not having any legal sanction under Indian TP provisions and is also not tenable in the light of recent judicial precedents on the issue; 3.3. not appreciating that the AMP expenses incurred by the appellant are out of the absolute need of the business operations relating to distribution function of the assessee and are not incurred for creation of any marketing intangibles; 3.4. proposing an erroneous approach for conducting the analysis as per BLT application, without citing any proposed approach for selection of comparable companies and identifying the components of AMP expenses; and 3.5. not providing any reason! documentary evidence to demonstrate that the AMP expenses incurred by the Assessee towards unrelated parties constitute an international transaction within the meaning of Section 92F(v) read with Section 92B of the Act. 4. That the Ld. AO/ Ld. TPO erred in not considering the correct segmental accounts as furnished by the assessee for calculating the Profit Leve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the grounds mentioned above. 6. The Ld. AR addressing on Ground No. 1 2, at the outset submitted that the sole issue involved in the present appeal is a Transfer Pricing Adjustment of Rs. 28.45 core made by TPO which has been upheld by the DRP and further submitted that the Jurisdictional issue which requires preliminary adjudication in the present appeal is as to whether or not exist the international transaction between the assessee and A.E. for brand promotion in India. The Ld. Counsel for the assessee further submitted that the said issue is now well settled in assessee s own case for following orders of the Tribunal:- (i) Order dated 16/12/2019 in ITA No. 5528/Del/2012 for the Assessment Year 2008-09 (ii) Order dated 05/08/2020 in ITA No. 2060/Del/2015 for Assessment Year 2010-11 (iii) Order dated 19/10/2020 in ITA No. 1088/Del/2016 Assessment Year 2011-12 (iv) Order dated 19/10/2022 in ITA No. 6151/Del/2013 Assessment Year 2009-10. 7. The Ld. Counsel further submitted that in the present appeal the Ld. TPO held that there exist two international transactions under purchase of finished goods and incurring of excessive AMP Expenses on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 16.12.2019, the Coordinate Bench has held that the AMP expenses incurred by the assessee does not fall within the definition of international transaction. The Bench further disapproved the determination of ALP by applying BLT method. Ultimately, the adjustment made on account of AMP expenses was deleted. Identical view was expressed by the Tribunal while deciding the issue in assessment year 2010-11 in ITA No. 2060/Del/2015, dated 05.08.2020. In the latest order passed for the assessment year 2011-12, the Bench has deleted the adjustment holding as under:- 6.5 As question of existence of international transaction of AMP and adjustment on account of the same in the case of assessee have been deleted in the assessment year 2008-09 and 2010-11, thus, respectfully following the finding of the Tribunal (supra), we hold that no international transaction of AMP exist in the case of assessee. Hence, we deleted the adjustment made on account of the AMP transaction. Corresponding grounds raised by the assessee are accordingly allowed.. Accordingly, the appeal of the assessee is allowed. 3.7. For the sake of completeness, we must observe, learned Departmental Representative h ..... 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