Held that the assessee was not mandated to incur expenditure under an agreement between the assessee and the associated enterprise. It was also not disputed that the expenditure incurred by the assessee was towards its own business promotion in India as the assessee was a distributor. The assessee operated in a limited risk environment in respect of the distribution and marketing segment. Therefore, the Assessing Officer was directed to delete the addition made towards advertisement, marketing and sales promotion expenses. Held that Functionally different companies cannot be taken as comparables. AY.2012-13)
Alcon Laboratories (India) Pvt. Ltd v. Dy. CIT (2022) 99 ITR 357 (Bang) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Sale of ophthalmic surgical electronic equipment, intraocular lenses, spare parts and pharmaceutical products.-Advertisement, marketing and sales promotion expenses-Bright Line Test-Expenditure incurred cannot be treated as International Transaction-Addition was deleted-Comparable-Functionally different companies cannot be taken as comparables. [S. 92CA]