THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -1 vs. PEPISCO INDIA HOLDING PVT. LTD.

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ITA/682/2019HC DelhiDLHC01030478201916 May 2024Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA6 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that the Income Tax Appellate Tribunal's computation of Advertisement, Marketing, and Promotion (AMP) expenses, which was based on the adoption of the Bright Line Test, would not sustain. This finding is directly in light of the Court's prior judgment in Sony Ericson v. CIT [2015 SCC OnLine Del 8083]. Consequently, the Court found no merit in the appeals filed by the Revenue. The appeals were dismissed.

What were the facts?

These appeals by the Principal Commissioner of Income Tax (Revenue) challenge orders of the Income Tax Appellate Tribunal (ITAT) concerning assessment years not specified in the provided text. The respondent is PepsiCo India Holding Pvt. Ltd. (Assessee). The appeals were listed for hearing, and the Court had previously decided principal questions, leaving the issue of Advertisement, Marketing, and Promotion (AMP) expenses for further submissions. The ITAT's computation regarding AMP expenses was based on the adoption of the Bright Line Test.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in its computation of Advertisement, Marketing, and Promotion (AMP) expenses by adopting the Bright Line Test. This is a question of law. Assessee's Contentions: Not recorded in the provided text. Revenue's Contentions: The Revenue argued that the ITAT's computation of AMP expenses based on the Bright Line Test was unsustainable. They relied on the judgment of the Delhi High Court in Sony Ericson v. CIT [2015 SCC OnLine Del 8083].

AI-generated summary — verify with the full judgment below

$~72 to 85 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 682/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPISCO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

73 + ITA 690/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPISCO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

74 + ITA 697/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

75 + ITA 698/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

76 + ITA 705/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

77 + ITA 706/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

PEPSI FOODS PVT. LTD. (NOW KNOWN AS - M/S

PEPSICO INDIA HOLDING PVT. LTD.) ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

78 + ITA 715/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

79 + ITA 718/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

80 + ITA 723/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

versus

PEPSICO INDIA HOLDING PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

81 + ITA 752/2019

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT. LTD ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

82 + ITA 152/2023

THE PR COMMISSIONER OF INCOME TAX CENTRAL 1

..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDING PVT LTD ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

83 + ITA 342/2023

PRINCIPAL COMMISSIONER OF INCOME TAX-7, DELHI This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

..... Appellant

Through: Mr. Agarwal, Sr.SC with Mr.

Shivansh B. Pandya and Mr.

Viplav Acharya, Jr.SCs along

with Mr. Utkarsh Tiwari, Adv.

versus

PEPSICO INDIA HOLDINGS PVT. LTD. & ANR. ..... Respondents

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

84 + ITA 184/2023

THE PR. COMMISSIONER OF INCOME TAX -7 ..... Appellant

Through: Mr. Ruchir Bhatia, Sr.SC with

Mr. Anant Mann, Jr.SC.

versus

PEPSICO INDIA HOLDINGS PVT. LTD. ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

85 + ITA 496/2023

PR. COMMISSIONER OF INCOME TAX, DELHI-7 ..... Appellant

Through: Appearance not given.

versus

PEPSICO INDIA HOLDING PVT LTD ..... Respondent

Through: Mr. Deepak Chopra, Mr.

Anmol Anand, Mrs. Priya

Tandon and Ms. Sheetal

Kandpal, Advs.

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR

KAURAV

O R D E R %

16.05.2024

1.

We had in terms of our order of 01 April 2024 decided all the principal questions and had left it open for learned counsels to address submissions on the question of Advertisement, Marketing and Promotion [“AMP”]. 2. However and upon going through the order of Income Tax Appellate Tribunal and insofar as it deals with the aforesaid issue, we find that the AMP computation was based on the adoption of the Bright Line Test. That would clearly not sustain in light of the judgement rendered by the Court in Sony Ericson v. CIT [2015 SCC OnLine Del 8083]. 3. In view of the aforesaid, we find no merit in these appeals. The same shall stand dismissed.

YASHWANT VARMA, J.

PURUSHAINDRA KUMAR KAURAV, J. MAY 16, 2024/p This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/05/2024 at 11:36:25

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