https://www.taxtmi.com/caselaws?id=459453 The ITAT Delhi held that transfer pricing adjustments on AMP expenses cannot be made without first establishing the existence of an international transaction. The TPO applied a Bright line test comparing the assessee's AMP/sales ratio of 57.44% against four comparables averaging 0.83%, but failed to demonstrate that higher AMP expenditure constituted an international transaction. Following the coordinate bench's decision in the assessee's own case for AY 2011-12, the tribunal ruled that ALP determination is premature without proving an international transaction exists. All grounds relating to transfer pricing adjustment were allowed in favor of the assessee. en-us Tue, 06 Oct 2020 00:00:00 +0530 Fri, 13 Dec 2024 19:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459453 The ITAT Delhi held that transfer pricing adjustments on AMP expenses cannot be made without first establishing the existence of an international transaction. The TPO applied a Bright line test comparing the assessee's AMP/sales ratio of 57.44% against four comparables averaging 0.83%, but failed to demonstrate that higher AMP expenditure constituted an international transaction. Following the coordinate bench's decision in the assessee's own case for AY 2011-12, the tribunal ruled that ALP determination is premature without proving an international transaction exists. All grounds relating to transfer pricing adjustment were allowed in favor of the assessee. Case-Laws Income Tax Tue, 06 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459453