2017 (1) TMI 957

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.... pertained to advertisement, marketing and sales promotion (AMP) expenses. It was urged by the assessee before the ITAT that the Assessing Officer (AO) and the Dispute Resolution Panel (DRP) erred in upholding the adjustments proposed by the Transfer Pricing Officer (TPO) to the extent of Rs. 6,89,06,377/- to the income of the assessee after holding that AMP spend of the Assessee answered the description of an international transaction as defined under Section 92B of the Act between the Assessee and its Associated Enterprise (AE). The case of the assessee throughout in the proceedings has been that there does not exist any international transaction involving the Assessee and its AE in relation to AMP expenses. 3. During the pendency of t....

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....international transactions can be made subject matter of transfer pricing adjustment in terms of Chapter X the Income Tax Act, 1961." In para 52 of the decision in Sony Ericsson Mobile Communications India Pvt. Ltd. v CIT (supra), the Court held: "The contention that AMP expenses are not international transactions has to be rejected." 5. Mr. Mukesh Butani, learned counsel for the Assessee, pointed out that against the decision of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v CIT (supra) the Assessee has preferred an appeal before the Supreme Court of India and the said appeal is pending consideration. It is submitted that as far as the AY in question i.e., 2006-07 is concerned, the Assessee has questioned the ....

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....rvives. The Court also notes that in similar circumstances in the case of Sony Ericsson, for AY 2010-11, this Court passed an order on 28th January 2016 in ITA No. 638 of 2015 requiring the ITAT to decide the appeal by Sony Ericsson for the said AY afresh including the point with regard to existence of an international transaction involving AMP expenses. 8. An apprehension is expressed by Mr Butani, learned counsel for the Assessee, that the ITAT might instead of deciding the above question itself, remand the matter further to the TPO or the DRP. He clarifies that all the materials necessary for determining the above question are already on record. If that is true, there should be no occasion for the ITAT to remand the determination of t....