2014 (8) TMI 961

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... For the Respondent : Sh. Peeyush Jain & Yogesh K. Verma, CIT DRs ORDER Per R. S. Syal, AM: These two appeals by the assessee relating to the assessment years 2008-09 and 2009-10 involve common issue. We are, therefore, proceeding to disposed them off by this consolidated order for the sake of convenience. Assessment Year 2008-09 2. The assessee is aggrieved only against the inclus....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ase of AMP expenses. The ld. AR argued that several sales expenses have been included in the AMP expenses, which merit exclusion. In the opposition, the ld. DR relied on the impugned order. 3. We have heard the rival submissions and perused the relevant material on record. The scope of AMP expenses came up consideration before the Special Bench in the case of LG Electronics India Pvt. Ltd. (sup....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... expenses in connection with the sales which do not lead to brand promotion should not be brought within the purview of AMP expenses for determining the cost/value of the international transaction. 4. Adverting to the facts of the instant case, it is discernible that the ld. CIT(A) misdirected himself by holding in para 7.5 of the impugned order that the focus should be on "marketing intangible....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....evident that the TPO simply applied the bright line test for making the disallowance by including both the above segments of expenses within the base of AMP expenses, which is not in consonance with the ratio decidendi of the special bench decision in LG Electronics India Pvt. Ltd. (supra). The action of the AO was prompted because he did not have the benefit of special bench decision at that time....