2023 (12) TMI 1188 - HC - Income Tax

TP Adjustment - International transaction or not? - AMP expenses - HELD THAT - As we had taken recourse to the decision rendered in Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT ( 2015 (3) TMI 580 - DELHI HIGH COURT and Maruti Suzuki India Ltd. 2015 (12) TMI 634 - DELHI HIGH COURT Thus, having regard to the aforesaid position, the appeal is closed. We are told that the appellant/revenue has preferred an appeal against the decision rendered in Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT. 2015 (3) TMI 580 - DELHI HIGH COURT Thus as made clear that if the appellant/revenue were to succeed in the pending Special Leave Petition, it would have liberty to approach the court for revival of the instant appeal. Registry will dispatch the copy of the order passed today to the respondent/assessee via all modes, including email.

Summary

Issues involved: Application for condonation of delay in filing the appeal, Assessment Year (AY) 2009-10 appeal concerning the order passed by the Income Tax Appellate Tribunal on Advertising, Marketing, and Promotion expenses as international transactions.

Condonation of Delay in Filing the Appeal:
An application was filed seeking condonation of a 42-day delay in filing the appeal. The court, considering the period involved, decided to allow the application, subject to exceptions. The delay was condoned, and the application was disposed of accordingly.

Assessment Year (AY) 2009-10 Appeal:
The appeal pertained to AY 2009-10 and aimed to challenge the order issued by the Income Tax Appellate Tribunal. It was noted that a similar issue had arisen in a previous appeal for AY 2010-11, indicating that the current appeal would face a similar outcome. The core issue revolved around whether the Tribunal erred in ruling that Advertising, Marketing, and Promotion expenses did not qualify as international transactions. The court referred to past decisions to support its conclusion. Ultimately, based on the existing legal position, the appeal was closed.

Special Leave Petition and Future Course of Action:
It was mentioned that the appellant/revenue had filed an appeal against a specific decision. If success was achieved in the pending Special Leave Petition, the appellant would have the liberty to seek revival of the current appeal. The Registry was directed to send a copy of the order to the respondent/assessee through various modes, including email.