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of <h1>Appeal allowed for statistical purposes, remitted to AO/TPO for fresh determination. Stay Application dismissed.</h1> <h3>M/s Perfetti Van Melle India Pvt. Versus DCIT, Circle-2 Gurgaon</h3> M/s Perfetti Van Melle India Pvt. Versus DCIT, Circle-2 Gurgaon - TMI Issues:Transfer Pricing Adjustment on account of AMP expenses.Analysis:The appeal was against the Transfer Pricing Adjustment on account of AMP expenses for the assessment year 2009-10. The Special Bench of the Tribunal in LG Electronics India Pvt. Ltd. case decided that incurring AMP expenses towards brand promotion constitutes an `international transaction'. The Special Bench listed 14 parameters for determining the correct ALP of AMP expenses, applicable to both manufacturers and distributors. The AO/TPO should ascertain if the Indian AE is a distributor or holds a manufacturing license. The AR argued that selling commission and discount should be excluded from AMP expenses, which the Special Bench agreed with. The matter was remitted to the AO/TPO to decide afresh in line with the LG Electronics case. The assessee will have a reasonable opportunity to be heard in the fresh proceedings.The AR contended that selling commission and discount should be excluded from AMP expenses, which the Special Bench agreed with. The AO/TPO was directed to exclude sales-specific expenses from the total AMP expenses. The appeal was allowed for statistical purposes, and the matter was remitted to the AO/TPO for fresh determination in line with the LG Electronics case. The Stay Application became infructuous due to the decision on the appeal, and it was dismissed accordingly.
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