AMADEUS INDIA PRIVATE LIMITED,DELHI vs. ACIT, CIRCLE-1(1), DELHI

ITA 5322/DEL/2024Status: DisposedITAT Delhi25 May 2026AY 2021-2215 pages
AI SummaryAllowed

What were the facts?

The assessee, Amadeus India Private Limited, filed a return of income declaring Nil income. The case was selected for scrutiny due to large international transactions and low profitability. The Transfer Pricing Officer (TPO) proposed an adjustment of Rs. 18.75 crore on account of Advertisement, Marketing, and Promotion (AMP) expenses.

What did the Tribunal hold?

The Tribunal held that the TPO wrongly invoked the provisions of Chapter X of the Income Tax Act for AMP expenses. Following jurisdictional precedents, it was decided that in the absence of a specific transaction for brand promotion between the assessee and its associated enterprise, no transfer pricing adjustment could be made.

What were the issues?

Whether AMP expenses incurred by the assessee constitute an international transaction for which transfer pricing adjustment can be made in the absence of a specific agreement or understanding with the associated enterprise.

Which sections of the Income-tax Act were involved?

Section 92B,Section 92F,Section 143(3),Section 144C(13),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Respondent: Shri Dharm Veer Singh, CIT(DR)
Hearing: 18.05.2026Pronounced: 25.05.2026

PER VIMAL KUMAR, JM: The appeal filed by the assessee is against Final assessment order dated 08.10.2024 of the Ld. Assessing Officer (‘AO’) under section 143(3)

P a g e | 2 Amadeus India Private Limited

r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 ( (hereinafter referred to as “the Act”) for Assessment year (‘AY’) 2021-22. 2. Brief facts of the case are that the assessee filed return of income on 24.02.2022 declaring an income of Rs. Nil. The case of assessee was selected for scrutiny for the reasons:

(i) Large value of International transactions in service

The order continues below.

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