2016 (11) TMI 1653

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.... the addition of transfer pricing adjustment on account of AMP expenses. 3. At the outset, the ld. AR submitted that the assessee did not incur any expenditure on advertisement, marketing and promotion (AMP) and all the expenses taken note of by the authorities below were in the nature of Selling expenses. She referred to The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 and The Drugs and Magic Remedies (Objectionable Advertisements) Rules, 1955, to buttress that the assessee, under law, is debarred from incurring any expenditure on advertisement, marketing and promotion. In view of the above, it was argued that the disallowance was not warranted. 4. Without prejudice to the above argument, the ld. AR also contende....

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....i High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del) and others. He also relied on still another judgment dated 28.1.2016 of the Hon'ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. (for the AY 2010-11) in which the question as to whether AMP expenses is an international transaction, has been restored for a fresh determination. He still further referred to three recent judgments of the Hon'ble Delhi High Court, viz., Rayban Sun Optics India Ltd. VS. CIT (dt. 14.9.2016), Pr. CIT VS. Toshiba India Pvt. Ltd. (dt. 16.8.2016) and Pr. CIT VS. Bose Corporation (India) Pvt. Ltd. (dt. 23.8.2016) in all of which similar issue has been restored for fresh determination in the ....

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....ention of the ld. AR and save as held in the preceding para, we find that she tried to fortify her argument that there was no international transaction on account of AMP expenses in terms of the judgment in the case of Whirlpool (supra) etc. On perusal of the order of the TPO, it emerges that while holding the AMP expenses to be an international transaction, he did not have the benefit of the judicial precedents now available for consideration, in some of which the transaction of AMP has been held as an international transaction, in others as not an international transactions, while still in some others, the matter has been restored for fresh consideration in the light of the judgment in Sony Ericsson (supra), in which the AMP expenses as a....