During Assessee Company’s Assessment, on matter being referred to Transfer Pricing officer, an adjustment on account of international transaction namely ‘creation of marketing intangible in favor of the associated enterprise’ arising out of the advertisement and marketing promotion was proposed and A.O made the adjustment in the final Assessment Order.

On Appeal Tribunal held that, there being no material to prove existence of an international transaction involving advertisement and marketing promotion expenses, which led to enhancement of brand value and creation of intangibles in favor of associated enterprise, the addition cannot be made, more so when similar adjustment were deleted in earlier years. ((AY. 2011-12)