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9. As per the Grounds of Appeal Nos. 3 to 26, the issues to be decided by us are in two folds:

I). Whether the TPO/DRP/AO are correct in holding that there is an existence of international transaction of AMP Expenses of the assessee? (Grounds No.3 to

10).

II. Whether the Method applied by the TPO ie Profit Split Method (PSM) in determination of Arm Length Price (ALP) of the Advertisement Marketing and Promotion (AMP) expenses is the proper or not (Grounds No. 11 to 26).

30. II. Whether the Method of Profit Split Method (PSM) adopted by the AO in determination Arm Length Price (ALP) of the Advertisement Marketing and Promotion (AMP) expenses is the proper or not.

31. The Ld. AR's contentions on the above issue are in two folds. Firstly, the TPO/AO is erroneous in adopting Profit Split Method (PSM) in determination ALP of the AMP expenses and Profit Split Method (PSM) is the most appropriate method for determination of ALP of the AMP expenses. In support of the same, the Ld. AR relied on the Order dated 22-09-2021 of the co ordinate bench in I.T.A. No. 463/Del/2021 ( Perfetti Van Melle India Pvt Ltd Vs.. Assistant Commissioner of Income Tax). Secondly, since the AO has failed to determine overall profits incurring to the group and in the absence of the audited financials of the AEs, the TPO/AO cannot make adjustment.

33. The TPO has benchmarked using the Residual Profit Split Method. For applying the Residual Profits Split Method, it is incumbent upon the TPO first to combine profit from the international transaction of incurring AMP expenses and then split the combined profit in proportion to the relative contribution made by both the entities. In order to work out the combined profit in the transaction the financials/profitability of the AE's is very much essential. In the instant case, the assessee has refused to submit the profitability of the AE's, therefore the TPO has adopted the RPSM.

40. By following the above said binding decision in Assessee's own case and also for the reasons mentioned above, we hold that the international transaction of AMP functions exists in the case of the assessee and restore the issue to the TPO for following the direction of the Hon'ble Delhi High Court in the case of Sony Ericsson (supra) for benchmarking under TNMM in aggregated manner along with the purchase of goods from the AE's or in the segregated manner, after taking into account appropriate comparables or applying of Resale price method or Cost Plus Method or Profit Split Method keeping in view the findings of the Hon'ble Delhi High Court. Needles to say that, the Assessee shall be given opportunity of being heard. Further Assessee is directed to provide all the relevant documents including the financials of its AE's if required, failing to which the Authorities can act in accordance with law by invoking the relevant provisions. Accordingly, we allow the Ground No.11 to 26 for statistical purposes.