Allowing the appeal of the assessee the Tribunal held that; Since this was first year of business in India, assessee had to advertise aggressively but could not be considered as expenditure incurred for brand building. There cannot be any formula with mathematical precision to determine ALP of international transaction relating to AMP expenses. Accordingly no adjustment is required. (AY. 2008-09)
Soni Mobile Communication (India) Pvt. Ltd. v. Add. CIT (2018) 196 TTJ 100 (2019) 173 DTR 17 (Delhi )(Trib.)
S. 92C : Transfer pricing—AMP expenses—No adjustment is required. There cannot be any formula with mathematical precision to determine ALP of international transaction relating to AMP expenses.