Advertisement Expenses Cannot Trigger TP Adjustment Without AE Arrangement

Whirlpool of India Ltd. Vs ACIT (ITAT Delhi) The Delhi ITAT heard an appeal filed against the final assessment order dated 30.04.2022 passed under Sections 143(3) read with 144C(13) of the Income Tax Act for AY 2017-18. The assessee, a subsidiary of Whirlpool USA engaged in manufacturing, sales and distribution of appliances, had entered into international transactions and adopted the TNMM method to justify arm’s length pricing. However, the TPO and Assessing Officer made transfer pricing adjustments mainly relating to advertisement, marketing and sales promotion (AMP) expenses. The assessee...