In absence of provision in agreement with Associated Enterprise, AMP expense cannot be termed as international transaction

PCIT Vs Amadeus India Pvt. Ltd (Delhi High Court) Delhi High Court held that Advertisement, Market and business Promotion (AMP) expenses incurred cannot be termed as an international transaction in the absence of any provision for the same in the agreement with Associated Enterprise. Facts- During the transfer pricing, the TPO observed that the Assessee has incurred more than normal sales and marketing expenses to build ‘Amadeus’ brand in India, which is legally owned by the AE i.e. M/s Amadeus IT Group SA (‘Amadeus Spain’). The TPO concluded that such higher than normal market expense...