Case Law Details
Acer India Pvt. Ltd. Vs The Dy. Commissioner of Income-tax (ITAT Bangalore)
Hon’ble Delhi High Court has held in the case of Maruti Suzuki Ltd (supra) that the revenue needs to establish the existence of international transaction before undertaking benchmarking of AMP expenses. In the instant case, we notice that the TPO has entertained the belief on the basis of presumptions that the assessee’s AMP expenses have promoted the brand value of its AE, i.e., no material has been brought on record to show the existence of International transaction. Before us, the Ld A.R placed his reliance on various case laws. We notice that the decision rendered by Delhi bench of ITAT in the case of L.G. Electronics India P Ltd vs. ACIT (ITA No.6253/DEL/2012 dated 14-01-2019) is applicable to the facts of the present case, wherein also identical T.P adjustment had been made.
FULL TEXT OF THE ITAT JUDGEMENT
Both the appeals filed by the assessee are directed against the orders passed by the assessing officer u/s 143(3) r.w.s.144C(13) of the Act in pursuance of directions given by the Ld Dispute Resolution Panel (DRP) and they relate to the assessment years 2012-13 and 2013-14. Both the appeals were heard together and are being disposed of by this order, for the sake of convenience.
2. The assessee company is engaged in the business of manufacture and trading of computer systems and peripherals.
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IMPROMPTU
Suggest to look through the expert article published and available in public domain on a search, titled- “Will Dispute Resolution Panels really be able to resolve disputes?”
In the light of the further bizarre developments since then, and the woeful field reality as of now, – mainly in the form of inconsistent itat and court decisions handed down- does not the title need to be reframed to read, – have DRPs really been able to resolve disputes; instead, not given rise to fresh kind of disputes, unlikely to be resolved in the foreseeable future ?!
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