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
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
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
marketing and sales promotion expenses (hereinafter
referred to as 'the AMP expenses') incurred by the appellant on the
basis of the order passed ... erred on facts and in law in not appreciating that the
AMP expenses, etc., unilaterally incurred by the appellant in India
could not be characterized
commercial expediency of AMP expenditure
incurred by the appellant and assuming that benefit has
accrued to AE on account of AMP expenses incurred ... AMP spent amount and has computed
total mark-up of 10.84% on AMP spent. So, the TPO computed
the percentage AMP to sales
assessee during the relevant
previous year incurred advertisement and sales promotion expenses (AMP)
expenses aggregating to Rs.288,97,64,000/- (including ... report dated 16.10.2014 proposed to enhance the adjustment
on account of AMP expenses to Rs. 198,50,28,757/- by applying the bright line
test
commercial expediency of AMP expenditure incurred by the appellant
and assuming that benefit has accrued to AE on account of AMP
expenses incurred ... compared AMP expenditure incurred by
assessee with an average AMP expenditure of following
comparables:
Sl.No. Name of the Company AMP/Sales Ratio (%)
1. Arintex
