Shanti Prime Publication Pvt. Ltd.
Sec. 92 of Income Tax Act, 1961 – Transfer Pricing – Addition made was deleted as Revenue was unable to show that there existed an international transaction between the Assessee and its AE in the first place.
Facts: “Whether in light of the decision in Maruti Suzuki Ltd. vs. CIT (2016) 381 Itr 117 (Del) the ITAT was justified in holding that there was an international transaction between the Assessee and its Associated Enterprise with regard to advertising, marketing and publicity (AMP) expenses and in remanding the matter to the Assessing Officer/Transfer Pricing Officer for determining the arms length price of such transaction for the purposes of transfer pricing adjustment?”
Held, that this Court is of the view that the ITAT was not justified in remanding the matter to the AO/TPO for determining the ALP of the alleged international transaction involving AMP expenses, when in fact, the Revenue was unable to show that there existed an international transaction between the Assessee and its AE in the first place. The question framed by this Court is answered in favour of the assessee – CIT Vs. VALVOLINE CUMMINS PVT. LTD.  424 ITR 162 (DEL)