#AMP expenses

ITAT Kolkata has ruled that domestic advertisement, marketing, and promotion expenses incurred solely for the assessee’s own business, without any agreement or service rendered to associated enterprises, do not qualify as international transactions under Section 92B. This clears the way for companies to claim such expenditures without forced markup adjustments, reinforcing the principle that transfer pricing rules apply only to cross-border dealings with tangible or intangible service transfers.

ITAT Delhi rules that advertisement, marketing, and sales promotion expenses incurred by a subsidiary are revenue in nature, even if they enhance the parent company’s brand. The ruling dismisses the Revenue’s appeal, reinforcing that such expenses cannot be capitalized under transfer pricing norms, offering clarity for multinational corporations on tax treatment of AMP costs.