Case Law Analysis
|Income Tax Appellate Tribunal
AMP Expenses as Revenue Expenditure | ITAT Delhi Rejects Capitalization for Brand Building by Subsidiary
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.