Home › Tax Laws › Most Hennessy India Pvt. Ltd. v. ACIT( 2018) 173 ITD 55 ( Delhi)(Trib),www.itatonline.org

Most Hennessy India Pvt. Ltd. v. ACIT( 2018) 173 ITD 55 ( Delhi)(Trib),www.itatonline.org

S. 92C: Transfer pricing -AMP Expenditure-In the absence of material to suggest that there was an “arrangement, understanding or action in concert” with respect of the AMP expenditure incurred by the assessee, the TPO is not justified in coming to the conclusion that there was an international transaction u/s 92B and that the assessee should have recovered an amount from its AE. The request of the Dept for a remand to the TPO is not acceptable. A remand to the assessment stage cannot be a matter of routine; it has to be so done only when there is anything in the facts and circumstances to so warrant or justify [ S.92B ]

Allowing the appeal of  the assessee the Tribunal held that ; In the absence of material to suggest that there was an “arrangement, understanding or action in concert” with respect of the AMP expenditure incurred by the assessee, the TPO is not justified in coming to the conclusion that there was an international transaction u/s 92B and that the assessee should have recovered an amount from its AE. The request of the Dept for a remand to the TPO is not acceptable. A remand to the assessment stage cannot be a matter of routine; it has to be so done only when there is anything in the facts and circumstances to so warrant or justify .( ITA No. 1906/Del/2014, dt. 23.08.2018)(AY. 2009-10)

[Click here to download PDF file]http://itatonline.org/archives/wp-content/uploads/Moet-Hennessy-AMP-Transfer-Pricing.pdf