Live Help

Research Box
Your Session Will Expire in   seconds.
What should we do?
Reset SessionCancel Session

No TP adjustment if AMP exp. was incurred without entering into any agreement with PepsiCo

December 5, 2018[2018] 100 159 (Delhi - Trib.)

IT/ILT : Assessee company involved in manufacturing of soft drink/juice based concentrates and had been supplying concentrates for aerated and non-aerated soft drinks to its deemed AEs in Bangaldesh, Nepal, Bhutan and Srilanka, in addition to its local sales in India. It had obtained a license from its US parent AE for technology to manufacture the concentrate and to use and exploit brands owned by said AE in regions designated to asssessee company. However, no transfer of any unique intangibles had been made except for license to use trademark which too was royalty free. It incurred huge advertising, marketing and promotional expenses to promote trademark of AE and TPO treating the AMP expenses as international transaction and applying various methods made AMP adjustments. However, there was no international transaction in form of any agreement/ arrangement on AMP expenditure incurred by assessee and secondly, under FAR analysis also, no such benefit from AMP-expenditure having any kind of bearing on profits, income, losses or assets accrued to AE. Thus, AMP adjustment made by the TPO/Assessing Officer would not be sustainable

read more
Best view in 1140 x 768