short "the Act"), the Transfer
Pricing Officer (TPO) on verifying the transfer pricing study report
furnished by the assessee found that during ... verifying
the transfer pricing study report, the Transfer Pricing Officer noticed
that while computing the margin, the assessee had excluded the AMP
expenditure. However
case, the
entire approach of the Transfer Pricing Officer in
determining the arm's length price of AMP expenditure is
fallacious.
7. Moreover, there ... doubt that the Transfer Pricing
Officer has determined the arm's length price of AMP
expenditure by applying BLT method. While doing
void ab-initio.
Transfer Pricing addition made on account of Advertisement, Marketing and
Promotional ("AMP") expenses
Manufacturing Segment
2. That ... reimbursed to sales promoters is already part of the Transfer Pricing
Adjustment on account of AMP adjustment and separate disallowance under
section
The Himalaya Drug Company , Bangalore vs The Deputy Commissioner Of Income Tax ... on 7 December
Resolution Panel ("DRP")/AO/Transfer
Pricing Officer ("TPO") erred in making a transfer pricing
adjustment of Rs.1409 ... have erred in making transfer pricing
adjustment on account of AMP expenditure in networking
segment ignoring the fact that under networking segment, the
Appellant operates
that no adjustment is to be made on
account of transfer pricing adjustment of AMP expenses in the
hands of the assessee, the case ... AMP
expenditure. Accordingly, we delete the adjustment on account
of transfer pricing analysis of AMP expenditure."
11. As mentioned elsewhere
M/S. The Himalaya Drug Company, ... vs Asst. Commissioner Of Income Tax, ... on 2 November
were accepted to be at arm's length price (ALP) by the
Transfer Pricing Officer ("TPO") / Assessing Officer. The TPO, vide order ... transfer pricing order passed for AY 2010-11.
Meaning thereby, the TPO intended to make transfer pricing adjustment on
account of alleged excessive AMP expenditure
case, the entire approach of
the Transfer Pricing Officer in determining the arm's length price of AMP
expenditure is fallacious.
7. Moreover, there ... doubt that the Transfer Pricing Officer has
determined the arm's length price of AMP expenditure by applying BLT
method. While doing
Panel
("DRP") / AO / Learned Transfer Pricing Officer
("TPO") erred in making a transfer pricing
adjustment ... 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
