Tribunal Rules on AMP Expenses, 20% Markup on Marketing Reimbursements; Software Division Benchmarking Adjustments.

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....This summary discusses various transfer pricing and tax issues. It analyzes whether Advertisement, Marketing and Promotion (AMP) expenses incurred by the assessee were for the sole benefit of its associated enterprise, thus constituting an international transaction u/s 92B. The Tribunal held that separate AMP adjustment is not required when the distribution business is already benchmarked. Regarding benchmarking of reimbursement of marketing expenses, the Tribunal directed a 20% markup adjustment to resolve the long-pending issue. It also covers the deselection of certain companies for benchmarking the software division's arm's length price, depreciation on the Dharuhera unit, dividend distribution tax u/s 115-O, and depreciation on softwar.........