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| The Tax Publishers2020 TaxPub(DT) 3429 (Mum-Trib) : (2020) 082 ITR (Trib) 0595 INCOME TAX ACT, 1961
Section 92B
In the absence of any 'understanding' or an 'arrangement' or 'action in concert' as per which assessee had agreed for incurring of AMP expenses for brand building of its AE and, AMP expenses incurred by assessee could not be treated as international transaction under section 92B.
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Transfer pricing - International transaction - AMP expenses - Absence of any understanding, arrangement, etc., between assessee and AE with respect to AMP expenditure incurred by assessee
Assessee-company engaged in manufacturing of cosmetic, marketing and sale of product, incurred huge expenses on advertising and marketing and promotion (AMP). TPO took the view that assessee being not legal owner of brand in India, by way of huge AMP expenses contributing for development of brand of brand owned by AE abroad and, therefore, same constituted international transaction calling for TP adjustment.Held: TPO failed to discharge onus cast upon him as regards providing that there was any 'understanding' or an 'arrangement' or 'action in concert' as per which wassessee had agreed for incurring of AMP expenses for brand building of its AE and, therefore, AMP expenses incurred by assessee could not be treated as international transaction under section 92B.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT, 1961
Section 253(4)
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