Transfer pricing adjustment by applying Bright Line Test not permissible: ITAT Delhi

Louis Vuitton India Retail Private Limited Vs DCIT (ITAT Delhi) ITAT Delhi held that Bright Line Test doesn’t have statutory mandate and cannot be applied for determining Arm’s Length Price [ALP] of Advertisement, Marketing and Promotion [AMP] expense. Accordingly, appeal allowed to that extent. Facts- The case of the assessee was selected for scrutiny assessment and reference was made to TPO in respect of international transaction. TPO vide order u/s 92CA(3) of the Act dated 31/07/2023, proposed cumulative TP adjustment of Rs. 4,34,45,060/-. Further draft assessment order u/s 144C (1) of ...