Bright Line Test rejected for AMP adjustment, so deletion of the transfer pricing addition was left undisturbed.

Deletion of the protective AMP transfer pricing addition was sustained because binding precedent had already rejected application of the Bright Line Test in the manner sought by the Revenue. The Tribunal followed that precedent, and the same view had also been taken in the assessee's own matter for another assessment year. As the issue was already concluded, no substantial question of law arose and the Tribunal's deletion of the addition required no interference.

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Issues: Whether the deletion of the protective addition made on account of alleged difference in the arm's length price of advertisement, marketing and promotion expenses by applying the Bright Line Test was sustainable.

Analysis: The issue was covered against the Revenue by an earlier binding decision holding that the Bright Line Test could not be applied in the manner suggested. The Tribunal had followed that decision while deleting the addition, and the same view had also been taken in an appeal concerning the same assessee for another assessment year.

Conclusion: The deletion of the addition was upheld and the Revenue's challenge failed.

Ratio Decidendi: Where the issue stands concluded by binding precedent rejecting application of the Bright Line Test to the AMP adjustment in the manner sought by the Revenue, no substantial question of law arises and the Tribunal's deletion of the addition calls for no interference.

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