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TMI Blog2017 (4) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... MENT YEAR 2010-11 2. The first issue raised by the assessee in its appeal is against the addition of Rs. 3,55,87,494 made by the AO on account of transfer pricing adjustment of Advertising, marketing and promotion expenses (AMP expenses). 3. The ld. AR submitted that the incurring of AMP expenses is not an international transaction at all and, hence, there can be no question of determining the arm's length price of this transaction or making any addition thereon. He relied on the judgments of the Hon'ble Delhi High Court in Maruti Suzuki India Ltd. & Another vs. CIT (2015) 129 DTR 25 (Del) and CIT vs. Whirlpool of India Ltd. (2015) 94 CCH 156 DEL-HC to contend that the AMP expenses could not be considered as an international transaction. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny Ericson Mobile Communications (supra). He also relied on a later judgment of the Hon'ble jurisdictional High Court in Yum Restaurants (India) P. Ltd. vs. ITO (2016) 380 ITR 637 (Del) and still another judgment dated 28.1.2016 of the Hon'ble Delhi High Court in Sony Ericson Mobile Communications (India) Pvt. Ltd. (for the AY 2010-11) in which the question as to whether AMP expense is an international transaction has been restored for a fresh determination. It was argued, similar to Reebok and Nikon's case (supra), that the judgment in the case of Yum Restaurants and Sony Ericson (for the AY 2010-11) delivered in January, 2016 is later in point of time to the earlier judgments in the case of Maruti Suzuki and Whirlpool, etc., and, hence, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in its earlier decision in Sony Ericson Mobile Communications (India) Pvt. Ltd. vs. CIT (2015) 374 ITR 118 (Del) has held AMP expenses to be an international transaction. It was argued the matter should be restored for a fresh determination. 6. We have heard the rival submissions and perused the relevant material on record. It is a matter of record that the Hon'ble High Court in Sony Ericsson (supra) has held AMP expenses as an international transaction. It can be seen that in some later decisions, view taken is at variance. Equally, the tribunal is also not consistent in its stand. When the TPO in the instant case held AMP expenses to be an international transaction, he did not have any occasion to consider the ratio laid down in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty or cess etc. The AO invoked the provisions of section 145A and held that the amount of duty ought to have been included in the valuation of closing stock. That is how, he redrafted the assessee's trading account by including VAT/SAD etc. in the value of closing stock. This resulted into an addition amounting to Rs. 16,72,848/-. The assessee is aggrieved against the inclusion of SAD in the value of closing stock only. 9. Having heard both sides and perused the relevant material on record it is observed that the assessment year under consideration is 2010-2011. Section 145A, which was inserted by the Finance (No.2) Act, 1998 with effect from 1.4.1999, has been made applicable from the assessment year 1998-1999. It provides that the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two issues raised in this appeal are challenge to the transfer pricing addition of Rs. 1,83,92,706/- on account of AMP expenses and addition of Rs. 84,73,680/- under section 145A. 12. We have heard the rival submissions and perused the relevant material on record. Both the sides are in agreement that the facts and circumstances of both the grounds for the instant year are mutatis mutandis similar to those of the preceding year. Following the view taken hereinabove, we set aside the impugned order on both the scores and remit them to the file of AO to be decided afresh in accordance with the observations made above in deciding the appeal for the immediately preceding year. Needless to say, the assessee will be allowed a reasonable opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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