https://www.taxtmi.com/caselaws?id=306059 Advertising and marketing spend cannot be recharacterised as an international transaction for transfer pricing merely because it exceeds comparable entities' expenditure. The Revenue must first establish a real agreement, arrangement or understanding showing that the Indian entity incurred the spend for the foreign associated enterprise; the bright line test cannot create a transaction where none is identified. On raw material imports, the benchmarking adopted below was not adequately examined, including the assessee's documentary support and alternative gross margin plea, so the matter was remitted for fresh consideration by the Assessing Officer / Transfer Pricing Officer. en-us Wed, 20 Jul 2022 00:00:00 +0530 Sat, 07 Jan 2023 08:47:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306059 Advertising and marketing spend cannot be recharacterised as an international transaction for transfer pricing merely because it exceeds comparable entities' expenditure. The Revenue must first establish a real agreement, arrangement or understanding showing that the Indian entity incurred the spend for the foreign associated enterprise; the bright line test cannot create a transaction where none is identified. On raw material imports, the benchmarking adopted below was not adequately examined, including the assessee's documentary support and alternative gross margin plea, so the matter was remitted for fresh consideration by the Assessing Officer / Transfer Pricing Officer. Case-Laws Income Tax Wed, 20 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306059