length price. The Transfer Pricing Officer after examining
the transfer pricing study report as well as other materials on record
issued a show cause notice ... case, the
entire approach of the Transfer Pricing Officer in determining the arm's
length price of AMP expenditure is fallacious.
7. Moreover, there
India Pvt Ltd (supra) has further held that no transfer
pricing adjustment in respect of AMP expenses can be made where the
assessee (Indian entity ... Transfer Pricing
25
valuation, therefore, would be mandated at that time. The
international transaction could then be made a subject matter of
transfer pricing
except for AY
2006-07, pertains to the transfer pricing adjustment on account of
AMP expenditure which we will deal firstly ... material referred
to before us in respect of transfer pricing issue pertaining to AMP
adjustment made by the TPO. We have already discussed in detail
Alternate Transfer Pricing Adjustment on account of import of finished goods
32. erred in making transfer pricing adjustment ... India)
3. Transfer pricing adjustment on account of 4,05,62,976
reimbursement of expenses
4. Alternate transfer pricing adjustment
reference
to the Transfer Pricing Officer (TPO) under section 92CA of the Act for
determination of the arms length price (ALP) of the international transactions ... arrangement between the assessee and the foreign AE for
incurring AMP expenditure, no Transfer Pricing Adjustment can be made in
respect of AMP expenditure
issued a detailed show cause
notice for making transfer pricing adjustment on AMP
expenditure of Rs.7,49,01,076/-. In the show cause notice ... regards the presumption for imposing a
transfer pricing adjustment in relation to AMP, the Court
held that "37. The provisions under Chapter
package or a bundle transaction. Transfer price for the distribution transaction
must take into consideration the AMP function;
• Compensation for the marketing functions performed ... accept the comparables and determine or accept the transfer
price and still segregate AMP expenses as an international transaction."
16.9 It was also submitted
erred in computing and
sustaining a Transfer Pricing Adjustment on account
of AMP Expenses to the tune ... material referred to before us in
respect of transfer pricing issue pertaining to AMP
adjustment made by the TPO. We have already
'discussed
file of the AO/TPO for fresh
determination of Transfer Pricing adjustment for AMP expenses. In order to
enable the determination of correct ... fresh determination of disallowance, if any, on account of Transfer pricing
adjustment for AMP expenses in the light of the decision of the Special Bench
consider the impact of this factor on the
determination of transfer pricing adjustment towards AMP expenses in
the light of decision of the Special Bench ... payment of royalty on the
question of determining the transfer pricing adjustment of AMP
expenses, the TPO did not examine such issue. Under these
circumstances
