AMP transfer pricing adjustment remanded for fresh examination of whether brand-building services created an international transaction.

AMP expenditure transfer pricing was examined in the context of whether the assessee had rendered brand-building services to its associated enterprise and whether an international transaction existed. The Tribunal noted that the relevant Delhi High Court jurisprudence on AMP adjustments was not uniformly available to the transfer pricing authorities at the material time, and that later jurisdictional decisions had remitted similar matters for fresh examination. It therefore set aside the impugned order and remanded the issue to the transfer pricing officer and assessing officer for reconsideration, including fresh benchmarking if an international transaction is found, after granting due opportunity of hearing. No final addition was sustained at this stage.

---

---

Issues: Whether the transfer pricing adjustment relating to advertisement, marketing and promotion expenditure should be sustained or the matter should be restored for fresh determination of the existence of an international transaction and consequential benchmarking.

Analysis: The appeal concerned an AMP adjustment made on the footing that the assessee had rendered brand-building services to its associated enterprise. The Tribunal noted that the Delhi High Court decisions on AMP expenditure had not been consistently available to the transfer pricing authorities at the material time and that later jurisdictional decisions had restored the issue for fresh examination. In these circumstances, the Tribunal found it to set aside the impugned order and remit the matter to the transfer pricing officer and the assessing officer for reconsideration of whether AMP expenditure constituted an international transaction and, if so, for fresh determination in accordance with law after granting due opportunity of hearing.

Conclusion: The matter was remanded for fresh adjudication of the AMP transfer pricing issue; no final addition was sustained at this stage.

Final Conclusion: The assessee obtained a remand on the core transfer pricing dispute, with the appeal being allowed for statistical purposes and the assessment left open for fresh decision by the lower authorities.

---