The Tax Publishers2020 TaxPub(DT) 4362 (Mum-Trib)

INCOME TAX ACT, 1961

Section 92B

In the absence of an agreement, formal or informal between assessee and AE to share/reimburse AMP expenditure, incurrate of AMP expenditure could not be treated as international transaction and hence, no adjustment to ALP was required to be made thereon.

Transfer pricing - International transaction - AMP expenses -

Assessee incurred AMP expenditure. TPO treated the expenditure as excessive and, therefore, treated the same as international transaction of brand business for benefit of its AE abroad. Held: TPO had not brought anything on record that there existed an agreement, formal or informal between assessee and its AE to share/reimburse AMP expenditure, incurrate of AMP expenditure could not be treated as international transaction and hence no adjustment to ALP was required to be made thereon.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 32(2)

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