| |
| The Tax Publishers2020 TaxPub(DT) 2787 (Del-Trib) INCOME TAX ACT, 1961
Section 92B
As there was a direct nexus between AMP expenses and business of assessee and assessee had to incur such expenditure to meet competition in Indian market, therefore, insurrance of AMP expenses could not be treated as international transaction of brand building for benefit of AE abroad.
|
Transfer pricing - International transaction - AMP expenses incurred by assessee alleged as brand building exercise for benefit of AE -
Assessee claimed deduction of advertisement, marketing and promotional (AMP) expenses incurred by it. AO treated AMP expenses as excessive being in the nature of brand building exercise for benefit of AE abroad and accordinlgy, an international transaction calling for TP adjustment. Held: There was a direct nexus between AMP expenses and business of assessee and assessee had to incur such expenditure to meet competition in Indian market for selling its products in India as unless the assessee made its products known to the market, its business would suffer. Further, AMP expenses were incurred by assessee from assessment year 2010-11 to 2016-11 and TPO had not considered the same as an international transaction, accordingly, there was no reason to take a different view for the year under consideration.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
INCOME TAX ACT, 1961
Section 37(1)
 SUBSCRIBE FOR FULL CONTENT
|