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TMI Blog2014 (8) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... ales which, in turn, lead to brand building. The Bench noticed that the expenses which are directly in connection with sales are only sales specific and hence cannot be brought within the domain of AMP expenses. It was further observed that the expenses which are not in the nature of advertisement, marketing or promotion, cannot help in creating any marketing intangibles or brand promotion for the foreign A.E. The Bench further examined the erstwhile provisions of sec. 37(3A) and (3B) and held them to be relevant in the correct interpretation of the scope of AMP expenses. It was eventually held that the expenses in connection with the sales which do not lead to brand promotion should not be brought within the purview of AMP expenses for det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomers' from the AMP expenses. When the assessment order was assailed before the ld. CIT(A), he, after considering the Special Bench order in the case of LG Electronics India Pvt. Ltd. Vs ACIT (2013) 140 ITD 41 (Delhi) (SB), directed to exclude Installation commission and Employees sales incentive from the overall base of AMP expenses. The ld. AR argued that several sales expenses have been included in the AMP expenses, which merit exclusion. In the opposition, the ld. DR relied on the impugned order. 3. We have heard the rival submissions and perused the relevant material on record. The scope of AMP expenses came up consideration before the Special Bench in the case of LG Electronics India Pvt. Ltd. (supra). The Bench, after considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Bench in LG Electronics India Pvt. Ltd. (supra). Under these circumstances, we are of the considered opinion that the impugned order cannot be sustained on this issue. 5. It is vivid from the special bench decision that a distinction has been made between sales specific expenses on one hand and the expenses which are incurred for the promotion of sales on the other, so that only the latter can be considered within the purview of AMP expenses. It is evident that the TPO simply applied the bright line test for making the disallowance by including both the above segments of expenses within the base of AMP expenses, which is not in consonance with the ratio decidendi of the special bench decision in LG Electronics India Pvt. Ltd. (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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