TaxTMI 
TaxTMI 
2017 (12) TMI 1773
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....cision of the Hon'ble High Court, which was stated to apply squarely to the facts of the case of the assessee and following which the appeal was decided in favour of the assessee, was not squarely applicable to the facts of the present case and hence a mistake had occurred in the order while applying the said decision to the facts of the present case. 3. Brief background of the case is that the assessee is a joint venture between Widex A/S Denmark and Mr. T.S. Anand of India and deals in hearing aids, selling products largely to the end users after customization of the products and through a network of dealers. In the impugned assessment year the Assessing Officer held that the Advertising, Marketing and Promotion (AMP) expenses incurr....
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.... for the existence of an arrangement or agreement or understanding between the two associated enterprises whereby one is obliged to spend on AMP to promote the brand of the other , and that merely because the expenses resulted in service or benefit to the other party would not by itself constitute the transaction as an international transaction. The I.T.A.T. found that in the present case, there was no finding of any clause in the agreement entered into between the two parties, requiring the assessee to undertake brand promotion expenses on behalf of the assessee and it was also found that AMP spend had been treated as international transaction since it was found to benefit the AE only as the brand was owned by the AE. Therefore, following ....
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....n this regard which shall ensure that the Widex Trade Mark, Trade Name and Logo shall at all times remain the property of Widex." . there has to be a separate agreement dealing with trademark etc. Ld.DR contended that this agreement was not produced before the TPO during the transfer pricing proceedings which fact has been mentioned in Para 7.1 of the TPO order passed u/s 92CA of the l.T. Act. 1961 dated 29.01.2015. Ld.DR contended that this agreement was important in the case as addition in this case had been done on the basis of AMP expenditure. 10. The Ld. counsel for assessee, on the other hand, contended that the above two clauses in the joint venture agreement nowhere demonstrate that the assessee was entrusted with the responsibili....