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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 ..... ant material on record. It is noticed that the Special Bench of the Tribunal in LG Electronics India (P.) Ltd. v. Asstt. CIT 2013 152 TTJ (Del) (SB) 273 by majority decision, has decided this very issue by inter alia holding that incurring of AMP expenses towards promotion of brand, legally owned by the foreign AE, firstly constitutes a `transaction' 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... `Manufacturers'. Though there is a specific ground for the relief in the light of the order by the Delhi Tribunal in the case of BMW India (P.) Ltd, but the ld. AR was fair enough not to press this ground by admitting the matter be decided as per the mandate of the special bench order in the case of LG Electronics India (P.) Ltd. (supra). 4. The 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 recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not recorded in the books of account. The 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. It was stated that after resignation from the assessee company he incurred 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 con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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