LG ELECTRONICS INDIA PRIVATE LIMITED,MATHURA ROAD, NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, DELHI

ITA 433/DEL/2024Status: DisposedITAT Delhi15 October 2025AY 2005-06Bench: SHRI MAHAVIR SINGH (Vice President), SHRI M. BALAGANESH (Accountant Member)64 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while AMP expenses can constitute an international transaction, the penalty under Section 271(1)(c) is not leviable for mere disallowance of expenditure if the assessee has disclosed all particulars. The penalty order was also found to be barred by limitation in one instance.

What were the facts?

The assessee, LG Electronics India Pvt. Ltd., incurred significant Advertisement, Marketing, and Sales Promotion (AMP) expenses. The Transfer Pricing Officer (TPO) treated these expenses as an international transaction, arguing that a portion was for brand promotion of the parent company and sought compensation.

What were the issues?

Whether AMP expenses constitute an international transaction requiring separate benchmarking, and whether penalty under Section 271(1)(c) is leviable for such expenses or due to procedural limitations.

Which sections of the Income-tax Act were involved?

Section 92B,Section 271(1)(c),Section 275

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Cases cited in this judgment(24)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER

ITA Nos. 6838/Del/2017 & 7424/Del/2018 (Assessment Years: 2012-13 & 2013-14) A Wing, Third Floor, D-3, Special Range-5, District Centre, Saket, New Delhi New Delhi (Appellant) (Respondent) PAN: AAACL1745Q A Wing, Third Floor, D-3, Circle-2, Noida (UP) District Centre, Saket, New Delhi (Appellant) (Respondent) PAN: AAACL1745Q

ITA Nos. 433 & 430/Del/2024 (Assessment Years: 2005-06 & 2006-07) A Wing, Third Floor, D-3, Circle-13(1), District Centre, Saket, New Delhi New Delhi (Appellant) (Respondent) PAN: AAACL1745Q Circle-2, Noida (UP) A Wing, Third Floor, D-3, District Centre, Saket, New Delhi (Appellant) (Respondent) PAN: AAACL1745Q A Wing, Third Floor, D-3, Circle-15(2), District Centre, Saket, New Delhi New Delhi (Appellant) (Respondent) PAN: AAACL1745Q Circle-15(2), A Wing, Third Floor, D-3,

The order continues below.

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