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TMI Blog2015 (11) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi-Trib) (SB)= 152 TTJ (Del)(SB)273, to conclude that the assessee had incurred non-routine AMP expenses contributed in the brand development of the assessee's parent company. The above position was confirmed by the DRP for both the years. 2. The petitioner/appellant/assessee has contended that it has a prima facie good case in as much as : i) BDF AG is the legal owner of Beiersdorf Group's trademark/brand it licenses to its affiliates. ii) The petitioner operates as an entrepreneur in the Indian market and it has the right to exploit the BDF AG's trademark in relation to licensed products sold in India. As a result, Petitioner makes necessary advertising and marketing investments, and bears all economic risks associated with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er connected matters, which was on the issue of Marketing intangible, the ld. Counsel for the assessee has contended that therein, it has been, inter-alia, held that applying the bright line test on the basis of the parameters prescribed in the decision of the Special Bench of the Tribunal in 'LG Electronics India Private Limited' would be adding and writing words in the statute and the Rules, and introducing a new concept which had not been recognised and accepted in any international commentary, or as per the general principles of international taxation accepted and applied universally, amounting to judicial legislation, which is unwarranted. The ld. Counsel for the assessee has contended that in view of the decision in the case of 'Sony ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e selected as the tested party for benchmarking the transactions of the assessee, since its AEs are the least complex entities as compared to the assessee, with simpler/fewer functions, lesser risks and no exploitation of non-routing intangibles in relation to the tested transaction of import finished goods for the Indian market. It has been submitted that the assessee has relied on the OECD TP Guidelines and the United Nations' Manual on Transfer Pricing, as well as the following Tribunal decisions: i) Tata Motors European Technical Centre Plc -ITA No.7630/Mum/2012 and ITA No.1698/Mum/2014 ii) General Motors India Pvt Ltd V/s DCIT (TS-215-ITAT-2013) (Ahd)-TP iii) Development Consultants Pvt.Ltd V/s DCIT (115 TTJ-577) iv) Ranbaxy Labora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to DSR/PSR and beauty advisors, which is generally below the basic exemption threshold and is, subject to TDS, as has been held in the following case laws : a) CIT V/s Vector Shipping Services Private Limited (SLP CC No.(s) 8068/2014(SC) b) CIT V/s Vector Shipping Services Private Limited (38 Taxmann.com 77) (All) c) United Hotels Ltd V/s ITO (2 SOT 267) Del (ITAT); d) Bhagyanagar Gas Itd V/s ACIT (29 taxmann.com 220)(Hyd ITAT) 9. It has been further contended that the payment of expenses without any profit element embedded in it does not constitute income in the hands of the recipient and such payments are not chargeable to tax, for which, there is no liability to deduct tax thereon. Reliance in this regard has been placed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a and Mahindra Ltd V/d DCIT (22 DTR 361)(Mum) ITAT, (SB) d) Vodafone Essar Ltd V/s DCIT (45 SOT 82) (Mum ITAT) e) Crompton Greaves Ltd V.DCIT (50 SOT 562) (Mum) ITAT f) Ramkrishna Vedanta Math V/s ITO (55 SOT 417) (Kol ITAT) The assessee also relied on the following decisions: a) CIT V/s Vector Shipping Services Private Limited (SLP CC No.(s) 8068/2014(SC) b) CIT V/s Vector Shipping Services Private Limited (38 Taxmann.com 77) All) c) Merilyn Shipping and Transports (136 ITD 23) (Vishakhapatnam ITAT) (SB). 11. It has been further contended that the reimbursement to the super stockiest and distributor are made through recording the debit notes received from them. Such debit notes are paid through the accounting adjustment accounts, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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