ITAT Deletes AMP Transfer Pricing Adjustments

The Delhi ITAT allowed Samsung India Electronics Pvt. Ltd.'s appeals by reiterating that AMP expenditure incurred for the assessee's own business cannot be regarded as an international transaction merely because the foreign parent owns the brand. 

The Tribunal held that, in the absence of evidence demonstrating an arrangement to incur AMP expenditure on behalf of the associated enterprise, no transfer pricing adjustment could be sustained under either the Bright Line Test or the intensity-based TNMM approach.