2020 (3) TMI 721

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....een filed by the revenue under Section 260A of the Income Tax Act, 1961 challenging the order dated 26th November, 2018 passed by the Income Tax Appellate Tribunal in ITA No.527/Del/2016 for the Assessment Year 2011-12. 2. Admittedly, the present case is covered by the Assessee' own case decided by a coordinate Bench of this Court for the Assessment Year 2010- 2011 in ITA No. 158/2016. The relevant portion of the order in ITA No. 158/2016 is reproduced here-in-below:- "1. This is an appeal filed by the Assessee under Section 260A of the Income Tax Act, 1961 ("Act‟) challenging the order dated 31stMarch, 2015 passed by the Income Tax Appellate Tribunal ("ITAT‟) in ITA No.608/Del/2015 for the Assessment Year ("AY&#8223....

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....the submissions of the counsel of both sides, "no other option, but to set aside the issuein dispute to the file of the AO/TPO on the above issue." Further, the AO/TPO was directed to follow the binding judgment of this Court. 12. It is the submission of Mr. Vohra that, as explained by this Court in Sony Ericsson India Pvt. Ltd. (supra) and later in Maruti Suzuki India Limited v. CIT (2016) 328 ITR 210 (Del), a basic requirement had to be fulfilled prior to commencing the exercise of determining the ALP of an international transaction. The Revenue had to discharge its onus of showing that there was an international transaction involving the Assessee and its AE with regard to the AMP expenses. If the Revenue failed to discharge this....

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....nce of an international transaction involving AMP expense. The only ground on which the conclusion was reached by the TPO was that the AMP expenditure incurred by the Assessee was in excess of that incurred by the comparables. His conclusion was not based on any other factor. In other words, it was not as if the conclusion arrived by the TPO was based on two or three grounds, one of which was the BLT. 16. This Court in Sony Ericsson India Pvt. Ltd. (supra) categorically found that the BLT was not an appropriate yardstick for determining the existence of an international transaction or for that matter for calculating the ALP of such transaction. The decision of the Full Bench of the ITAT in L.G. Electronics India Pvt. Ltd. v. ACIT (....