advertisement, marketing and
promotion expenses' (hereinafter referred to as 'AMP expenses'),
which though has been made on different reasons and by applying ... years impugned before us, the TPO has made AMP
adjustments, by treating the AMP expenses as international
transaction and then after applying various methods, like
AMP/ AMP Gross
14. TPO observed that AMP expenditure had increased significantly as
percentage of sale. Further, the assessee had offered discounts in the form ... clearing expenses 3,569,537
17 Misc. Expenses 3,960,471
18 Sales incentive expenses 2,869,355
19 Warehouse running and maintenance expenses
expenditure like AMP as a separate international
transaction without bifurcation/segregation, it would lead to unusual
and incongruous results as AMP expenses was the cost ... extraordinary AMP expense in order to
develop marketing intangibles for the AE.
35. There is no basis for concluding that the AMP expenses incurred
Total 12,39,19,327
6. The TPO benchmarked the AMP expenses incurred by the Appellant,
by applying the Bright Line Test ... expenditure like AMP as a separate
international transaction without bifurcation/segregation, it would
lead to unusual and incongruous results as AMP expenses was the
cost
marketing and sales promotion expenses (hereinafter referred to
as "the AMP expenses') incurred by the appellant.
15.1. Whether on the facts ... AMP to sales ratio (refer table below) of the comparable companies is more than
AMP to sales ration of the appellant and the AMP adjustment
incurring of AMP
expenditure is not a unilateral act of the assessee; the AE needs
to compensate the assessee for AMP expenses ... like AMP as a separate international transaction without
bifurcation/segregation, it would as noticed above, lead to unusual
and incongruous results as AMP expenses
marketing and sales promotion expenses (hereinafter
referred to as 'the AMP expenses') incurred by the appellant.
2.1 That on the facts ... respect of expenditure incurred
on advertising, marketing and publicity ("AMP expenses").
2.2 That on the facts and in the circumstances of the case
AMP / Total Income of SIEL (C) = (B)/(A) 7.7094%
Bright Line (AMP/total income of comparables) (D) 1.05%
AMP as per bright line ... selling costs within the ambit of the AMP expenditure. A break-up
of the total AMP expenses (operational and promotional expenses
M/S. Philips India Limited (Formerly ... vs Acit, Circle - 12(2), Kolkata , Kolkata on 4
following expenditure on AMP expenses:
PARTICULARS AMOUNT [RS.] AMOUNT [RS.]
Advertisement expenses 316,18,06,996
Sales promotion expenses 3,427,627,784
Other discounts ... like AMP as a separate international transaction without
bifurcation/segregation, it would as noticed above, lead to unusual
and incongruous results as AMP expenses
