2019 (9) TMI 1744 - HC - Income Tax

TP adjustment towards AMP expenditure - International transaction or not? - adoption of the bright line test method for making the protective adjustment by the AO - HELD THAT - A perusal of the impugned order shows that the same proceeds on the basis of the decision of this Court in CIT Vs. Sony Ericson Mobile Communication India Pvt. Ltd. 2015 (3) TMI 580 - DELHI HIGH COURT In that decision this Court rejected the adoption of the bright line test method for making the protective adjustment by the Assessing Officer. In the present case as well the Assessing Officer had adopted the bright line test method and the Tribunal by following the decision of this Court in Sony Ericson Mobile Communication India Pvt. Ltd. (supra) has rejected the said method. In view of the fact that this Court has already rendered its decision on the same issue we dismiss this appeal.

Summary

In the case before the Delhi High Court, the Revenue appealed against the order dated 24.01.2019 by the Income Tax Appellate Tribunal (ITAT) concerning the assessment year 2014-15. The ITAT's decision was based on the precedent set by the Delhi High Court in "CIT Vs. Sony Ericson Mobile Communication India Pvt. Ltd., [2015] 55 taxmann.com 240," where the Court rejected the "bright line test method" used by the Assessing Officer for protective adjustments. The High Court, comprising HON'BLE MR. JUSTICE VIPIN SANGHI and HON'BLE MR. JUSTICE SANJEEV NARULA, upheld the ITAT's decision, dismissing the appeal, as the issue had already been adjudicated in the Sony Ericson case.