2017 (8) TMI 1484

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....tion 144C (13) read with section 254 of the Income Tax Act, 1961(hereinafter 'the Act'). 2. The only issue in this appeal of assessee whether AMP expenses incurred by assessee is an international transaction as per the provisions of section 92B of the Act or not. For this assessee has raised following grounds: - "Transfer pricing adjustment on account of Advertisement and sales promotion expenses AMP expenses is not an international transaction  1. Erred in holding that the AMP expenditure incurred by the Assessee is an international transaction as per provisions of Section 92B of the Act. AMP expenditure incurred by the Assessee only for its own business. 2. Erred in concluding that the Assessee ....

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....order wherein Tribunal has discussed the issue in Para 5 as under: - "5. We have heard the rival submissions and perused the material before us. Undisputed facts of the case are that the assessee had entered in to international transactions with its AE's, that it had determined the ALP of such transaction adopting TNMM, that the TPO accepted the valuation of the those transaction, that he further held that the AMP expenses incurred by the assessee (Rs.96.38 crores) were to be examined as per the provisions of section 92 of the Act, that he held the assessee contributed to enhance the brand value of the brand owned by the AE's. He also held that the assessee was entitled to compensation for the expenses incurred under the head AMP. ....

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....nsaction in question was not an international transaction and that the TPO had wrongly invoked the provisions of Chapter X of the Act for the said transaction. First effective ground of appeal (GOA1- 16) is decided in favour of the assessee and the additions made by the AO are directed to be deleted." 4. The learned Counsel for the assessee took us through the order of TPO, wherein exactly on identical facts, the TPO has confirmed the addition vide Para 7.3, 7.5 and 7.6 as under: - "7.3 I have considered the submissions made by the assessee during the course of assessment proceedings. The ITAT in its order dated 19 June 2013 in the assessee's case wherein ITAT has directed this office to examine the international transaction of ....