RECKITT BENCKISER INDIA PRIVATE LIMITED,GURGAON, HARYANA vs. D.C.I.T., CIRCLE 11.1, KOLKATA, KOLKATA

ITA 2319/KOL/2024Status: DisposedITAT Kolkata18 March 2025AY 2021-202240 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following a coordinate bench's decision in the assessee's own case for prior years, held that AMP expenses incurred by the assessee were not an international transaction. The assessee had autonomy in incurring these expenses, and they primarily benefited its own business.

What were the facts?

The assessee, Reckitt Benckiser (India) Pvt. Ltd., appealed against assessment orders concerning multiple assessment years. The core issue revolved around the tax treatment of Advertisement, Marketing, and Promotion (AMP) expenses, which the tax authorities considered an international transaction.

What were the issues?

Whether AMP expenses incurred by the assessee constitute an international transaction requiring transfer pricing adjustment, and if the 'bright line test' is applicable for benchmarking such expenses.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: SHRI RAJESH KUMAR & SHRI SONJOY SARMA

For Appellant: Shri Deepak Chopra, AR & Shri Rohan Khare, AR, Shri Guru Bhashyam, CIT, DR
For Respondent: Shri Deepak Chopra, AR & Shri Rohan Khare, AR, Shri Guru Bhashyam, CIT, DR
Pronounced: 23.01.2025

Heard together (5 matters)

ITA Nos.78/Kol/2018
ITA Nos.2681/Kol/2018
ITA Nos.2631/Kol/2019
ITA Nos.1801/Kol/2024
ITA Nos.2319/Kol/2024

Read from the judgment's own cause title. This page is filed under one of them.

Per Sonjoy Sarma, Judicial Member:

These appeals have been preferred by the assessee against the separate orders dated 30-10-2017, 29.10.2018, 30.10.2019, 26.07.2024 and 23.10.2024 of the DCIT, Circle-12(1), Kolkata [hereinafter referred to as 'AO'], passed u/s.143(3) read with section 144C(13) of the Income-tax Act, 1961 hereinafter referred to as 'the Act') passed against the directions of the Dis

The order continues below.

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