The assessee, engaged in import and resale of BMW automobiles in India, incurred advertisement, marketing and promotion (AMP) expenditure. The Transfer Pricing Officer treated the expenditure as an international transaction for brand-building services rendered to the associated enterprise by applying the bright-line test. The Tribunal held that the Revenue failed to establish any agreement or arrangement requiring the assessee to incur AMP expenditure for the benefit of its associated enterprise. The bright-line test has no statutory recognition for determining the existence of an international transaction. Since the assessee’s operating margins were higher than those of the comparables and no material established any brand-building service rendered to the associated enterprise, no transfer pricing adjustment was warranted. The Tribunal held that the payment for information technology support services received from the associated enterprise constituted an independent international transaction and could not be aggregated with other international transactions. Following the decision in the assessee’s own case for the earlier assessment year, the issue was restored to the Transfer Pricing Officer for fresh determination of the arm’s length price.   (AY. 2011-12).