Bundy India Limited Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad: TP Adjustment on AMP Expenditure Deleted for Lack of International Transaction Evidence; Transfer Pricing: No Adjustment on AMP Spend Without Proving AE Benefit, Rules ITAT Ahmedabad; Mere Incurrence of AMP Expenses Doesn’t Constitute International Transaction; ITAT Deletes TP Addition on AMP Spend Citing Absence of AE Agreement or Reimbursement Clause; MAP Margin Applies Beyond Borders – ITAT Ahmedabad Follows Earlier Ruling, Sends Bundy India’s TP Issues Back to TPO.
The appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad, was filed by M/s Bundy India Ltd. against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), for the Assessment Year 2009–10, involving transfer pricing adjustments aggregating to Rs. 1,77,85,368 made in three segments — (i) IT-enabled services (ITES), (ii) disallowance of management charges, and (iii) the manufacturing segment.
Background
The assessee had filed its return declaring a loss of Rs. 2.99 crore. The case was selected for scrutiny, and assessment was completed under section 143(3) read with section 144C(4), determining total income at Rs. 8.57 crore after various additions. The Transfer Pricing Officer (TPO) made adjustments to the value of international transactions, which were upheld by the CIT(A).
