2017 (11) TMI 1783

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....year 2013-14. As the issues requiring our adjudicated in this appeal are neatly identified legal issues within a very narrow compass of relevant material facts, with the consent of the parties, this appeal itself has been taken up for hearing alongwith the stay petition which was listed before us today. 2. Grievance of the assessee, in substance, is twofold- first, against the addition of Rs. 23,83,92,783 made by the Assessing Officer, in respect of arm's length price adjustment for advertising promotion and marketing (AMP) expenses by applying the bright line test (BLT), made on protective basis; and- second, against denial of set off in respect of brought forward business losses to the extent of Rs. 26,25,85,933 by holding that, in vie....

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....ourt. The panel finds no infirmity in this (protective assessment). 4. It was in this backdrop that the Assessing Officer reiterated the ALP adjustment of Rs. 23,83,92,783 by observing as follows: Thus, the transfer pricing adjustment using intensity adjustment, applying TNMM in the case of the assessee stands revised to NIL, while Rs. 23,83,92,783, following the Bright Line Method, stands confirmed following the DRP order. 5. The assessee is aggrieved and is in appeal before us. 6. Having heard the rival contentions and having perused the material on record, we are unable to see any merits in the impugned ALP adjustment of Rs. 23,83,92,783 on, what has been termed as, protective basis. Learned Departmental Representative has not e....

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....is known to the income tax law, has no application in the cases like the one before us. 7. In view of the above discussions, the addition of Rs. 23,83,92,783 stands deleted. 8. So far as the question of set off of the brought forward business losses is incurred, learned representatives fairly agree that the matter is required to be remitted to the file of the Assessing Officer for fresh adjudication in the light of the result of the appellate proceedings in respect of the preceding assessment years in which the related disputed additions have been made. It is pointed out by the learned counsel that, in any event, the assessee has claimed set off of the loss of Rs. 26,25,85,933 incurred in the assessment year 2012-13 which could not ha....