2017 (2) TMI 120

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....the three appeals before us. 2. The Revenue urges the following reframed question of law for our consideration: "Whether on facts and in the circumstances of the case and in law, the Tribunal was right in accepting the international transaction being reimbursement of advertisement expenses incurred by the Associated Enterprise of the assessee in Dubai, Egypt and Malaysia at arm's length of the basis of the profits earned by the assessee on its entire exports of various products on application of Rule 10B(1)(e) " 3. The respondent assessee is engaged in the business of manufacture and export of cosmetic and toiletry products. During the subject assessment year, the respondent assessee had reimbursed 20% of the advertisement expenses ....

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....e Associated Enterprises is a consequence of a business strategy as it results in better profits. On the question of determination of the ALP it held that the TPO has neither challenged the appropriate method for determining the ALP nor the comparables selected by the respondent assessee to determine it. In the above view, it held that addition was made on adhoc basis and the same is not permissible. Thus, the appeals were allowed and the addition deleted. 5. On further appeal by the Revenue, the Tribunal held that the TPO has not disputed the comparable selected nor the appropriate method of determining the ALP. It was not a case of the TPO that the ALP of the advertisement expenses is nil on application of some other comparables or invok....