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“AMP expenditure”

Transfer PricingSection 92CSection 92C149 judgments

The decision most relied on for AMP expenditure is Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT (374 ITR 118), cited in 499 judgments on BharatTax.

Leading authorities on AMP expenditure

Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT
374 ITR 118 · 2015 · High Court
499
citing judgments

The existence of an international transaction for Advertising and Marketing Promotion (AMP) expenditure requires the revenue to discharge the burden of proof. An explanation inserted under Section 92B does not automatically make AMP expenditure an international transaction.

Sassoon J. David & Co. Pvt. Ltd. v. CIT
118 ITR 261 · 1979 · Supreme Court
323
citing judgments

An expense incurred by an assessee for its own business, such as advertising, marketing, and promotional (AMP) expenses, cannot be disallowed merely because it incidentally or indirectly benefits the assessee's sister concerns or associated enterprises.

Maruti Suzuki India Ltd. v. CIT
381 ITR 117 · 2016 · High Court
220
citing judgments

The Bright Line Test (BLT) is not a recognized method under the Income-tax Act and Rules for benchmarking advertising, marketing, and promotion (AMP) expenses or for determining the existence of an international transaction or its Arm's Length Price. The Revenue must first establish the existence and price of an international transaction before seeking an ALP adjustment.

Sony India (P) Ltd. v. DCIT
114 ITD 448 · 2008 · ITAT
131
citing judgments

For transfer pricing purposes, functionally dissimilar entities that have significant business differences must be excluded from the list of comparables for benchmarking analysis. It also provides guidance on the non-allocation of advertisement, marketing, and promotion (AMP) expenses to other entities when incurred solely for the assessee's business.

Bausch & Lomb Eye Care (India) Pvt. Ltd. v. Additional CIT
381 ITR 227 · 2016 · High Court
127
citing judgments

The existence of an international transaction must be established before its arm's length price can be determined. An alleged 'excessive' AMP expenditure cannot unilaterally expand the scope of an international transaction if its existence is contested.

Whirlpool of India Ltd. v. DCIT
381 ITR 154 · 2016 · High Court
119
citing judgments

Advertisement, Marketing, and Promotion (AMP) expenditure incurred by an Indian entity directly benefits its own business and cannot be automatically treated as an international transaction for global brand building by associated enterprises without specific statutory provisions or proper analysis.

Maruti Suzuki India Ltd. (MSIL) v. Addl. CIT, TPO
328 ITR 210 · 2010 · High Court
39
citing judgments

AMP expenditure is not an international transaction. The Bright Line Test is not a valid basis for determining the existence of an international transaction or computing the arm's length price.

381 ITR 154; Bausch & Lomb Eyecare (India) Pvt Ltd. v. ACIT
283 CTR 322 · 2016 · High Court
22
citing judgments

The Delhi High Court holds that expenditure on Advertisement, Marketing, and Promotion (AMP) by a taxpayer is not an international transaction under Section 92B of the Income Tax Act. Consequently, adjustments for AMP expenses in transfer pricing cannot be made without specific statutory provisions.

Judgments citing AMP expenditure

Jubilant Foodworks Ltd, Noida vs. ACIT, Circle, 5(1)(1)., Gautam Buddha Nager

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 2310/DEL/2022[2018-19]Status: DisposedITAT Delhi16 Jul 2025AY 2018-19

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

Section 143(2)Section 143(3)Section 144(1)Section 144CSection 144C(13)Section 144C(5)Section 924ASection 928Section 92CSection 92F

disregarding various rulings pronounced by the Honorable Jurisdictional High Court, thereby not following the judicial discipline as mandated by law. 5.2 Incorrectly holding that AMP expenditure constitutes an international transaction under section 928 read with section 92F(v) of the Act. 5.3. Disregarding the nature of AMP expenses incurred ... quantum of AMP adjustment contained the value of selling expenses incurred by the Appellant, which does not fall under the purview of AMP expenditure. That on the facts and in the circumstances of the case and in law, the Ld. AO/ TPO have erred in enhancing the income

Edwards Lifesciences (India) Pvt Ltd, Mumbai vs. ACIT-2(1)(1), Mumbai

In the result, the appeal by the assessee is partly allowed

ITA 6188/MUM/2024[2021-22]Status: DisposedITAT Mumbai30 Jun 2025AY 2021-22

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailedwards Lifesciences (India) Pvt. Ltd., 4Th Floor Commerz – Ii, International Business Park Oberoi Garden City, Goregaon (East), Off Western Express Highway Goregaon (East), ............... Appellant Mumbai - 400063 Pan : Aaacb4203F V/S Assistant Commissioner Of Income Tax, Circle-2(1)(1), ……………… Respondent Kautilya Bhawan, Bkc, Mumbai - 400012 Assessee By : Ms. Chandni Shah Ms. Riddhi Maru Ms. Kinjal Patel Revenue By : Shri Bhagirath Ramawat, Sr.Dr

For Appellant: Ms. Chandni ShahFor Respondent: Shri Bhagirath Ramawat, Sr.DR
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 153Section 92B

fact that the arm's length return earned by the Appellant for its distribution activities has already taken into account the incurrence of such AMP expenditure. The Appellant therefore prays the entire AMP adjustment INR 9,212,742 / - to be deleted. 3. Initiating penalty proceedings under section 270A ... than the proposed Transfer Pricing Adjustment. The assessee also placed reliance upon various judicial pronouncements wherein it has been held that mere incurring an AMP expenditure should not lead to inference of the existence of an international transaction and the Revenue has to prove with tangible material, the existence

Tata Cummins Private Limited, Pune vs. The DCIT Circle-1-Jamshedpur and the Assessment Unit, Income-Tax Department, NFAC, Delhi, Jamshedpur

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 430/RAN/2024[2021-22]Status: DisposedITAT Ranchi12 Jun 2025AY 2021-22

Bench: Shri George Mathan & Shri Ratnesh Nandan Sahaytata Cummins Private Limited, D.C.I.T., Cummins India Office, Tower-A, 7Th Circle-1, Vs. Floor, Survey No. 21, Balewadi, Pune, Jamshedpur. Maharashtra. Pan No. Aaact 6353 L Appellant/ Assessee Respondent/ Revenue

Delhi High Court in the above cases, we hold that no TP adjustment can be made by deducing from the difference between AMP expenditure incurred by assessee-company and AMP expenditure of comparable entity, if there is no explicit arrangement between the assessee-company and its foreign AE for incurring ... such expenditure. The fact that the benefit of such AMP expenditure would also endure to its foreign AE is not sufficient to infer existence of international transaction. The onus lies on the revenue to prove the existence of international transaction involving AMP expenditure between the assessee- company and its foreign

Ucweb Mobile Private Limited, Gurgaon vs. Assessment Unit, Inocome Tax Department, Gurgaon

In the result, the appeal of the assessee is partly allowed

ITA 3945/DEL/2024[2020-21]Status: DisposedITAT Delhi30 May 2025AY 2020-21

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)

Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 144C(13)Section 144C(5)Section 253(1)(d)Section 43(3)

which indicates how, in the absence of the BLT, one can discern the existence of an international transaction as far as AMP expenditure is concerned. 41. Recently this Court has in its decision dated 11th December 2014 in ITA No. 110 of 2014 (Maruti Suzuki India Ltd. v. Commissioner ... compensated for the expenses incurred by it on behalf of the foreign AE. What will then be required to be benchmarked is not the AMP expenditure but the extent to which the Indian entity must be compensated. 44. Further in Maruti Suzuki India Ltd. (supra) this Court observed

Wrigley India Private Limited, Delhi vs. ACIT, Circle-27(2), Delhi

ITA 953/DEL/2022[2016-17]Status: DisposedITAT Delhi29 May 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

Wrigley India Private Limited, Delhi vs. ACIT, Circle-27(2), Delhi

ITA 952/DEL/2022[2015-16]Status: DisposedITAT Delhi29 May 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that

DCIT, Circle-25(1), New Delhi vs. Wrigley India P.Ltd, New Delhi

ITA 1295/DEL/2022[2016-17]Status: DisposedITAT Delhi29 May 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

DCIT, Circle- 25(1), New Delhi vs. Wrigley India Pvt. Ltd., New Delhi

ITA 1294/DEL/2022[2015-16]Status: DisposedITAT Delhi29 May 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

DCIT, Circle-25(1), New Delhi vs. Wrigley India P.Ltd, New Delhi

ITA 1293/DEL/2022[2014-15]Status: DisposedITAT Delhi29 May 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that

JCIT, Circle-27(2), New Delhi vs. Wrigley India Pvt. Ltd., New Delhi

ITA 702/DEL/2019[2013-14]Status: DisposedITAT Delhi29 May 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

Wrigley India Pvt. Ltd., 206, Okhla Industrial Estate, Phase-3, New Delhi-110020 vs. DCIT, Circle 27(2), New Delhi

ITA 667/DEL/2019[2013-14]Status: DisposedITAT Delhi29 May 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Manish Agarwal

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that

DCIT-15(1)(2), Mumbai vs. Kellogg India Private Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 138/MUM/2024[2016-17]Status: DisposedITAT Mumbai21 Apr 2025AY 2016-17

Bench: Shri Pawan Singh & Shri Girish Agrawal. (Physical Hearing)

Section 254(1)

advertisement, marketing and sales promotion expenses (AMP Expenses) has been consistently made by AO/TPO has been deleted by the Tribunal by holding that AMP expenditure does not constitute an international transaction under Chapter-X of Income Tax Act in absence of any agreement/arrangement for incurring AMP expenditure on behalf ... India Transfer Pricing regulations. In the current assessment year, the TPO relied on his predecessor's order and made/suggested adjustment on account of AMP expenditure, without bringing anything on record to distinguish the fact from earlier years. The learned CIT(A) while allowing relief followed the decisions of earlier years

Tupperware India Private Limited, New Delhi vs. DCIT, Circle-25(1), New Delhi

In the result, the appeal of the assessee for AY 2018-19 is partly allowed for statistical purposes

ITA 462/DEL/2022[2017-18]Status: DisposedITAT Delhi17 Apr 2025AY 2017-18

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Rohit Tiwari, AdvFor Respondent: Shri S. K. Jadav, CIT DR
Section 143(3)Section 144BSection 144CSection 144C(3)Section 92CSection 92F

arbitrary amount incurred by the Appellant together on alleged AMP expenses and payment of royalty, 5.13. including sales and distribution expenses as part of AMP expenditure, and ignoring the Ld. DRP's directions pronounced in this regard in Appellant's own case for AY 2013-14; Page ... legal submissions qua the proposed adjustment of AMP expenses . The Learned TPO ignored the contentions of the assessee and made transfer pricing adjustment of AMP expenditure which stood confirmed up to the level of Learned DRP and ultimately got culminated in the final Page

Tupperware India Private Limited, New Delhi vs. ACIT, Circle-25(1), New Delhi

In the result, the appeal of the assessee for AY 2018-19 is partly allowed for statistical purposes

ITA 2409/DEL/2022[2018-19]Status: DisposedITAT Delhi17 Apr 2025AY 2018-19

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Rohit Tiwari, AdvFor Respondent: Shri S. K. Jadav, CIT DR
Section 143(3)Section 144BSection 144CSection 144C(3)Section 92CSection 92F

arbitrary amount incurred by the Appellant together on alleged AMP expenses and payment of royalty, 5.13. including sales and distribution expenses as part of AMP expenditure, and ignoring the Ld. DRP's directions pronounced in this regard in Appellant's own case for AY 2013-14; Page ... legal submissions qua the proposed adjustment of AMP expenses . The Learned TPO ignored the contentions of the assessee and made transfer pricing adjustment of AMP expenditure which stood confirmed up to the level of Learned DRP and ultimately got culminated in the final Page

Ayatna Realty Pvt. Ltd., New Delhi vs. ACIT, Circle-3(2), New Delhi

In the result, the appeal of the Assesse in ITA No

ITA 1295/DEL/2024[2012-13]Status: DisposedITAT Delhi07 Apr 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri Manish Agarwalm/S Wrigley India Private Dcit, Limited Circle-27(2), 206, Okhla Industrial Vs. New Delhi. Estate, Phase Iii, New Delhi-110020 Pan-Aaacw1789P (Appellant) (Respondent) Joint Cit (Osd), M/S Wrigley India Private Circle-27(2), Limited, New Delhi Vs. 206, Okhla Industrial Estate, Phase Iii, New Delhi-110020 Pan-Aaacw1789P (Appellant) (Respondent)

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

Ayatna Realty Pvt. Ltd., New Delhi vs. ACIT, Circle-3(2), New Delhi

In the result, the appeal of the Assesse in ITA No

ITA 1294/DEL/2024[2011-12]Status: DisposedITAT Delhi07 Apr 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri Manish Agarwalm/S Wrigley India Private Dcit, Limited Circle-27(2), 206, Okhla Industrial Vs. New Delhi. Estate, Phase Iii, New Delhi-110020 Pan-Aaacw1789P (Appellant) (Respondent) Joint Cit (Osd), M/S Wrigley India Private Circle-27(2), Limited, New Delhi Vs. 206, Okhla Industrial Estate, Phase Iii, New Delhi-110020 Pan-Aaacw1789P (Appellant) (Respondent)

Section 250(6)Section 92CSection 92C(3)Section 92D

facts and circumstances of the case the CIT(A) was right in law in observing that the benefit to the AE due to AMP expenditure is only incidental and not intentional? (f) Whether in the facts and in law, the CIT(A) was right in law in observing that ... company, therefore, marginal part of such expenses were for the benefit of brand through which the AE was benefited and therefore, the AMP expenditure are international transaction. Thereafter, the TPO has applied TNM Method and worked out the adjustment on account of AMP expenses at Rs.3

Reckitt Benckiser India Private Limited, Gurgaon, Haryana vs. D.C.I.T., Circle 11.1, Kolkata

ITA 2319/KOL/2024[2021-2022]Status: DisposedITAT Kolkata18 Mar 2025AY 2021-2022

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma

For Respondent: Shri Deepak Chopra, AR & Shri Rohan Khare, AR
Section 143(3)Section 144C(13)Section 144C(5)Section 92BSection 92C

circumstances of the case, the TPO/ DRP have erred in not appreciating the fact that the appellant is the sole beneficiary of the AMP expenditure incurred by it and the benefit to the AEs, if any, is only incidental. Hence, bearing the cost of such expenditure was consistent with ... appellant being a full-fledged manufacturer undertaking all the functions and bearing all the risks, is justified in incurring and bearing the cost of AMP expenditure. 3(g) That, on the facts and in the circumstances of the case, the TPO/ DRP have erred in not appreciating that application

Reckitt Benckiser (India) Pvt. Ltd., Gurgaon vs. D.C.I.T., Circle - 11(1), Kolkata

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 1801/KOL/2024[2020-2021]Status: DisposedITAT Kolkata18 Mar 2025AY 2020-2021

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaita Nos.78/Kol/2018 Assessment Year: 2013-14 &

For Appellant: Shri Deepak Chopra, AR & Shri Rohan Khare, ARFor Respondent: Shri Guru Bhashyam, CIT, DR
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 92BSection 92C

circumstances of the case, the TPO/ DRP have erred in not appreciating the fact that the appellant is the sole beneficiary of the AMP expenditure incurred by it and the benefit to the AEs, if any, is only incidental. Hence, bearing the cost of such expenditure was consistent with ... appellant being a full-fledged manufacturer undertaking all the functions and bearing all the risks, is justified in incurring and bearing the cost of AMP expenditure. 3(g) That, on the facts and in the circumstances of the case, the TPO/ DRP have erred in not appreciating that application

Reckitt Benckiser (India) Pvt Ltd., Kolkata vs. DCIT, Circle-12(1), Kolkata

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 2631/KOL/2019[2015-16]Status: DisposedITAT Kolkata18 Mar 2025AY 2015-16

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaita Nos.78/Kol/2018 Assessment Year: 2013-14 &

For Appellant: Shri Deepak Chopra, AR & Shri Rohan Khare, ARFor Respondent: Shri Guru Bhashyam, CIT, DR
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 92BSection 92C

circumstances of the case, the TPO/ DRP have erred in not appreciating the fact that the appellant is the sole beneficiary of the AMP expenditure incurred by it and the benefit to the AEs, if any, is only incidental. Hence, bearing the cost of such expenditure was consistent with ... appellant being a full-fledged manufacturer undertaking all the functions and bearing all the risks, is justified in incurring and bearing the cost of AMP expenditure. 3(g) That, on the facts and in the circumstances of the case, the TPO/ DRP have erred in not appreciating that application

Reckitt Benckiser (India) Pvt Ltd., Kolkata vs. DCIT, Circle-12(1), Kolkata

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 78/KOL/2018[2013-14]Status: DisposedITAT Kolkata18 Mar 2025AY 2013-14

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaita Nos.78/Kol/2018 Assessment Year: 2013-14 &

For Appellant: Shri Deepak Chopra, AR & Shri Rohan Khare, ARFor Respondent: Shri Guru Bhashyam, CIT, DR
Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 92BSection 92C

circumstances of the case, the TPO/ DRP have erred in not appreciating the fact that the appellant is the sole beneficiary of the AMP expenditure incurred by it and the benefit to the AEs, if any, is only incidental. Hence, bearing the cost of such expenditure was consistent with ... appellant being a full-fledged manufacturer undertaking all the functions and bearing all the risks, is justified in incurring and bearing the cost of AMP expenditure. 3(g) That, on the facts and in the circumstances of the case, the TPO/ DRP have erred in not appreciating that application