this Tribunal for deciding the Transfer Pricing issue relating to AMP
expenses in the light of prevailing jurisprudence.
14
6. As stated above, the assessee ... Tribunal vide order dated 05.10.2016
remanded the issue of Transfer Pricing adjustment pertaining to
AMP expenses back to the file of the TPO holding that
expenditure, the approach of the Transfer Pricing Officer and the DRP
in making transfer pricing adjustment on account of AMP expenditure
is against settled principle ... disclosed price. The transfer pricing
adjustment envisages the substitution of the price of such
international transaction with the ALP.
64. The transfer pricing adjustment
AMP expenses using AMP intensity
adjustment without appreciating that the use of such an adjustment is not
mandated under the Indian transfer pricing regulations.
Royalty ... transfer pricing adjustment of royalty. The
Assessing Officer further made additions of Rs.19,54,80,6000/- on account of
Transfer Pricing Adjustment
transaction is sine qua non to invoke the provisions of transfer
pricing. The AMP expenditure incurred does not fall within the definition of
international transaction ... submitted that the AO/TPO/DRP determined transfer
pricing adjustments relating to the AMP expenditure by applying the Bright
Line Test which is not recognized
Chapter X of the Act contemplates
such an adjustment. An AMP transfer pricing adjustment to
which none of the substantive or procedural provisions of
Chapter ... provisions of Chapter X of the Act being
applicable to an AMP transfer pricing adjustment, the
inevitable conclusion is that Chapter X as a whole
erred in not determining the
'excessive' alleged AMP spend and marking the transfer pricing on the entire
alleged AMP spend incurred ... erred in not
determining the excessive alleged AMP expenses and the marketing transfer
pricing on the entire alleged AMP Expenditure incurred by the assessee
Company
again
increasing the addition on account of transfer pricing adjustment of AMP expenses
to Rs. 81.85 crore and odd. That is how, the assessee ... High Court on the issues concerning the transfer pricing
adjustment towards AMP expenses, which is still pending.
6
ITA No.1933/Del/2017
accept the
comparables and determine or accept the transfer price and
still segregate AMP expenses as an international transaction.
6
(vi) The Assessing Officer ... ascertain and conduct detailed functional
analysis which would include AMP expenses. The Transfer Pricing
Officer has mentioned the copy of Advertisement Agreement which
Officer made a reference to
the Transfer Pricing Officer (TPO) for determination of the Arm's Length
Price (ALP) of the international transactions entered ... directing adjustment towards
the alleged AMP expenditure without carrying out or causing to be
carried out any transfer pricing analysis, including outlining the
alleged international
this appeal is against the addition on account
of transfer pricing adjustment in AMP (Advertisement, marketing and
promotion) expenses amounting ... could not be held amenable to transfer
pricing provisions and thus liable to transfer price adjustment.
(ii) Without prejudice, the AO/ DRP/ TPO erred
