#Section 92B

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 Mumbai rules that redeemable preference shares without dividend payments cannot be reclassified as loans under transfer pricing provisions unless exceptional evidence proves otherwise. The tribunal also upheld the presumption that own funds are used for advances, rejecting disallowance under Section 36(1)(iii) where assessee's funds were already invested in fixed assets.