Incidental benefit to AE doesn’t prove existence of international transaction

ACIT Vs Adidas India Marketing Pvt. Ltd. (ITAT Delhi) ITAT Delhi held that the main purpose of incurring of huge AMP expenses has largely benefited assessee in India, with an incidental benefit arising to foreign AE. Hence, it is very difficult to accept existence of an international transaction. Facts- An order u/s 92 CA (3) of the Act has been passed on 31/03/2009 by the TPO by proposing adjustment of an amount of Rs. 23,90,62,090/-. The assessment order came to be passed on 25/03/2013 u/s 143(3) (ii) read with Section/144C of the Act by making an addition of Rs. 20,73,93,115/- on account of...