Case Law Details
Appeal is raised by the assessee against the addition of Rs. 40,64,33,832/- made by Assessing Officer (A.O.) in its order issued u/s 143(3) read with section 144C of the Income Tax Act , 1961 (herein after refer as “the Act”) in relation to A.Yr. 2010-11.
Brief of the Case
In the case M/s Nikon India (Pvt) Ltd. Vs. DCIT, ITAT held that the AMP (Advertising, Marketing & Promotion) is an international transaction and bright line test cannot be applied on it. Considering the Rule 10 B & relying on the judgment of Honable High Court in Sony Ericsson Mobile Communication Private Limited, Transfer pricing officer is directed to make fresh assessment of Arm Length Price of AMP transaction in accordance with the rules generated in the judgment. Matter resorted back to the file of A.O., as T.P.O in the light of “Bright Line Test”, didn’t make any detailed working of comparables and ITAT, in the absence of documentation, not able to make decision on the ALP of AMP Expense.
Facts of the case
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