The Delhi High Court directed the Transfer Pricing Officer (TPO) to determine the existence of an international transaction between the Yum Restaurants and its AE involving Advertisement, Marketing and Promotion (AMP) expenses.
The petitioner, Yum Restaurants India Private Limited challenging the order passed by the Income Tax Appellate Tribunal (ITAT) Delhi, wherein the ITAT has remanded the matter back to the Transfer Pricing Officer (TPO) and directed it to consider the combined effect of 14 factors for determining the cost/ value of international transactions in accordance with the Special Bench order passed immediately preceding year of the respondent-assessee in LG Electronics India Pvt. Ltd. vs. ACIT.
The petitioner contended that the said judgment of the Special Bench has already been set aside by the learned Predecessor Division Bench vide judgment and order.
The division bench of Justice Manmohan and Sanjeev Narula in the light of the decision of the Special Bench in the case LG Electronics India Pvt. Ltd. vs. ACIT remanded the issue concerning the determination of the existence of an international transaction between the Assessee and its AE involving AMP expenses and the further question of determination of its ALP to the AO /TPO for a fresh decision.
Therefore, the court directed the TPO to determine the cost/ value of international transactions.Subscribe Taxscan AdFree to view the Judgment