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TMI Blog2015 (3) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee should be excluded from the total of AMP expenses and thereafter a fresh determination should be made for ascertaining the extent of TP adjustment, if any, in accordance with the directions given by the Special Bench in the case of LG Electronics India (P.) Ltd. (supra). - Matter remanded back - Decided in favour of assesse. Non recording of transactions in books of account - assessee explained that the PAN of the assessee company got reported against this expenditure incurred by Mr. I. Rahumathullah, who was earlier working for the assessee and after leaving the assessee, joined M.J. India - Held that:- relevant material on record we find that the said Mr. I. Rahumathullah categorically admitted the version stated by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39; and then an `international transaction'. The contention that no disallowance can be made out of AMP expenses by benchmarking them separately when the overall net profit rate declared by the assessee is higher than other comparable cases came to be specifically jettisoned by the special bench. Resultantly, the transfer pricing adjustment in relation to such AMP expenses has been held to be sustainable in principle. In the eventual order, the Special Bench restored the matter to the file of the AO/TPO for fresh determination of Transfer Pricing Adjustment in relation to AMP expenses. In order to enable the determination of correct ALP of AMP expenses, the Tribunal listed out 14 parameters at Para 17.4 of its order which should be exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. AR argued that the authorities below erred in including selling commission and discount etc. within the ambit of AMP expenses. It was submitted that such expenses should be excluded at the very outset from consideration under the broader scope of AMP expenses. The ld. DR relied upon on the impugned order. 5. After considering the rival submissions and perused the relevant material on record, we find that there is a merit in the contention of the ld. AR that the selling commission and discount etc. should be excluded from AMP expenses for working out the TP adjustment, if any. The Special Bench in LG Electronics India (P.) Ltd. (supra) has specifically dealt with this issue in para 18 of its order and held that the sales specific ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed expenses for his new employer and used the Credit card bearing the PAN of the assessee. Copies of e-mail sent to the assessee by the said Mr. I. Rahumathullah accepting the use of such credit card for his current employer were also produced before the authorities below by which he admitted that the amount spent by him was reimbursed to him by his employer. Not convinced, the addition was made. 8. After considering the rival submissions and perusing the relevant material on record we find that the said Mr. I. Rahumathullah categorically admitted the version stated by the assessee. There is further corroboration of this version from Citi Bank, a copy of which has been reproduced in the direction of the DRP. These facts amply prove that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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