No TP Adjustment for Increase in brand value due to use of foreign AEs brand name

Hyundai Motor India Ltd. Vs ACIT (ITAT Chennai) Tribunal held that increase in brand value due to use of foreign AEs brand name  cannot be considered as provision for services, as per international transaction definition u/s.92B of the Income Tax Act, 1961. The Tribunal further held that the expression ‘benefit’ and ‘service’ have different connotations. A service has to be a conscious activity and not a passive exercise. Not all benefits arise as a result of services rendered by someone and further all services do not result in benefits to the other parties. For the purpose of defini...