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| The Tax Publishers2023 TaxPub(DT) 1110 (Bang-Trib) INCOME TAX ACT, 1961
Section 92B
TPO did not bring on record some empirical evidence or material on record to show that there existed a mutual arrangement or understanding between assessee and AE or they acted in concert to incur AMP expenses, therefore, incurrence of AMP expenses could not be considered as an international transaction under section 92B so as to call for TP adjustment.
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Transfer pricing - International transaction - AMP expenses - No understanding or arrangement between assessee and AE to incur AMP expenses
Assessee incurred expenditure on account of advertisement marketing and promotion activities (AMP expenses). TPO treated this as international transaction for benefit of brand owned by AE abroad and thus proposed ALP adjustment. Held: TPO did not bring on record some empirical evidence or material on record to show that there existed a mutual arrangement or understanding between assessee and AE or they acted in concert to incur AMP expenses, therefore, incurrence of AMP expenses could not be considered as an international transaction under section 92B so as to call for TP adjustment.
Relied:Maruti Suzuki India Ltd. (2015) 381 ITR 117 (Del-HC) : 2015 TaxPub(DT) 5219 (Del-HC) and Whirlpool of India Ltd. (2015) 381 ITR 154 (Del) : 2015 TaxPub(DT) 5343 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2018-19
IN THE ITAT, BANGALORE C BENCH
GEORGE GEORGE K, J.M. & SHRI LAXMI PRASAD SAHU, A.M.
Acer India (P) Ltd. v. DCIT
IT(TP)A No. 882/Bang/2022
A.Y. 2018-19
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