2019 (5) TMI 2015 - HC - Income Tax

HC Upholds ITAT's Decision on Rs.4.26 Crore Arms Length Price Discrepancy in International Transaction Expenses.

The HC dismissed the Revenue's appeal against the ITAT's decision concerning the addition of Rs.4,26,35,832 related to the Arms Length Price discrepancy ... Addition on protective basis on account of the difference in the Arms Length Price (‘ALP’) of the international transaction on advertisement, marketing and promotion (‘AMP’) expenses by applying the Bright Line Test (‘BLT’) - HELD THAT:- The said issue stands answered against the Revenue and in favour of the Assessee by the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. [2015 (3) TMI 580 - DELHI HIGH COURT] Therefore, the impugned order of the ITAT, which follows and applies the above decision, suffers from no legal infirmity. An identical question raised by the Revenue in relation to the order of the ITAT in the case involving the same Assessee for AY 2010-11, was rejected by this Court, by dismissing the Revenue’s appeal [2016 (8) TMI 1175 - DELHI HIGH COURT] The High Court dismissed the Revenue's appeal against the ITAT's order regarding the addition of Rs.4,26,35,832 on account of the difference in Arms Length Price of international transaction on AMP expenses. The ITAT's decision was in line with a previous court ruling, and no substantial question of law arose.