2022 (11) TMI 384

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Nos. 8825/2020, 8827/2020 in ITA 175/2020 Keeping in view the averments in the applications, the delay in filing and re-filing the appeals is condoned. Accordingly, the present applications stand disposed of. ITA 174/2020 ITA 175/2020 1. The present appeals have been filed by Revenue under Section 260A of the Income Tax Act, 1961 (the 'Act'), against the common impugned order and judgment dated 27th February 2019, passed by the Income Tax Appellate Tribunal ('ITAT') in ITA Nos. 1811/Del/2017 and 7691/Del/2017, dated 27th February, 2019, for the Assessment Years ('AYs') 2012-13 and 2013-14 respectively. 2. The facts in assessment years forming subject matter of the present appeal(s), with respect t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....per the distribution agreement dated 01st October, 2004, entered between Amadeus Global Travel Distribution SA Madrid ('Amadeus Spain') and the Assessee, Amadeus India Pvt. Ltd., receipts in the hands of the Assessee were in the nature of distribution fee and as per the said agreement, the main income of the Assessee was in the nature of marketing and distribution of products of Amadeus Spain. He states that ITAT failed to appreciate that the Assessee by means of AMP expenditure has assisted its foreign AEs in penetrating the Indian market and building a brand in India. He states that the ITAT failed to consider that by means of AMP expenditure, the Assessee is creating a market of intangible for its foreign AE which translates into....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... paid to travel agents constitutes selling expenses and are to be excluded from the ambit of AMP expenditure. The ITAT on the basis of the findings of the TPO and DRP presumed that since Revenue has not accepted either of the said decisions and has filed a petition before the Supreme Court, the TPO to keep the issue alive, has made both the protective and substantive AMP adjustments in the assessment years under consideration. 8. However, the ITAT, following the law laid down by this Court in Bausch & Lomb Eyecare Pvt. Ltd. vs. Additional Commissioner of Income Tax, [2016] 381 ITR 227 and Maruti Suzuki vs. CIT, [2016] 381 ITR 117, held that in the facts and circumstances of the present appeals, there is no international transaction betwe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... case. The contention of the Revenue that ITAT failed to consider the CBDT Circular 5/2014 dated 11th February, 2014, is also untenable inasmuch as, another division bench of this Court in Principal Commissioner of Income Tax - 04 v. IL & FS Energy Development Company Ltd., (2017) 399 ITR 483, has held as under: - "... 18. The CBDT Circular upon which extensive reliance is placed by Mr. Hossain does not refer to Rule 8D(1) of the Rules at all but only refers to the word "includible" occurring in the title to Rule 8D as well as the title to Section 14A. The Circular concludes that it is not necessary that exempt income should necessarily be included in a particular year's income for the disallowance to be triggered. ....