2019 (1) TMI 1341

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....s and circumstances of the case, Casio India Company Private Limited (hereinafter referred to as 'the Appellant') respectfully craves leave to prefer an appeal under section 253(1 )(d) of the Income-tax Act, 1961 (hereinafter referred to as 'Act'), against the order dated 31 October 2018 (received by Appellant on 15 November 2018) by the Deputy Commissioner of Income Tax, Income Tax Circle 5(2) (hereinafter referred to as the learned 'AO') under section 143(3) read with section 144C of the Act in pursuance of the directions dated 17 September 2018 issued by the Hon'ble Dispute Resolution Panel (hereinafter referred to as 'DRP'), on the following grounds, which are independent of and without prejudice to each other. General Grounds:....

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....ction' u/s 92B of the Act, disregarding the findings of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd., Whirlpool of India Ltd., Bausch & Lomb Eye Care India Pvt. Ltd and Honda Siel Power Products Ltd., etc. 5. That, on facts and in law, the Hon'ble DRP/ Ld. TPO/ Ld. AO erred in treating/ upholding the AMP expenses as an 'international transaction', misinterpreting the decision of the Hon'ble Delhi High Court in the case of Sony Ericsson Mobile Communications India Pvt. Ltd; without appreciating the business model and functional profile of the appellant. 5.1 That the Hon'ble DRP/ Ld. TPO/ Ld. AO resorted to the provisions of Section 92F (v) of the Act and failed to show the existence of an....

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....diture incurred by Appellant as rendition of advertisement and brand promotion services to its overseas associated enterprises and without satisfying the criteria of re-characterization as laid out in various judicial precedents. 7. That the Hon'ble DRP/ Ld. TPO/ Ld. AO disregarding the findings of the Hon'ble Delhi High Court in the case of Maruti Suzuki India Ltd and Sony Ericsson Mobile Communications India Pvt. Ltd., failed to appreciate that once the appellant has satisfied arm's length basis using Transactional Net Margin Method ("TNMM") i.e. operating margin of the appellant is more than the operating margin of comparable companies, no further separate adjustment for AMP expenditure is warranted. Grounds in rela....

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....ing inappropriate selection of comparable companies for the mark-up on alleged AMP expenditure while computing adjustment in protective assessment and Hon'ble DRP erroneously upheld the approach of the Ld. TPO/AO. Other Grounds 13. That the Ld. TPO has arbitrarily rejected Allied Photographics India Limited for the purpose of intensity disregarding the fact that the company during the year had entire revenue from trading activities. 14. That on the facts and circumstances of the case, the Ld. AO erred in law and in fact, by initiating penalty proceedings under section 271(1)(c) of the Act. 2. At the outset, Ld.Counsel submitted that intensity adjustment on substantive basis has already been made in respect of c....