PCIT-1, NEW DELHI vs BEAM GLOBAL SPIRITS & WINE (INDIA)PVT.LTD.

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: March 03, 2025 Judgment pronounced on March 07, 2025 + ITA 155/2022 PCIT-1, NEW DELHI .....Appellant Through: Mr. Gaurav Gupta, SSC, Mr. Shivendra Singh, Adv. Versus BEAM GLOBAL SPIRITS & WINE (INDIA) PVT.LTD. .....Respondent Through: Mr. Deepak Chopra and Mr. Harpreet Singh Ajmani, Ms. Ashmita, Advs. + ITA 156/2022 PCIT-1, NEW DELHI .....Appellant Through: Mr. Gaurav Gupta, SSC, Mr. Shivendra Singh, Adv. Versus BEAM GLOBAL SPIRITS & WINE (INDIA) PVT. LTD. .....Respondent Through: Mr. Deepak Chopra and Mr. Harpreet Singh Ajmani, Ms. Ashmita, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR JUDGMENT YASHWANT VARMA, J. 1. These two appeals pertain to Assessment Years1 2009-10 and 2012-13 and raise the question of whether the Advertisement, 1 AYs Signature Not Verified Digitally Signed ITA 155/2022 & 156/2022 Page 1 of 38 By:KAMLESH KUMAR Signing Date:07.03.2025 15:09:32 Marketing and Promotion2 expenditure incurred by the respondent- assessee would constitute an “international transaction” as contemplated under Section 92B read along with Section 92F of the Income Tax Act, 19613. 2. The appeals were originally admitted by us in terms of an order dated 12 March 2024. We had on that date after hearing learned counsels for respective sides framed the following two questions which, according to us, arose for our consideration: - “(a) Whether the Income Tax Appellate Tribunal ["ITAT"] was justified on facts and in law in deleting addition of Rs. 35,09,33,103/- on account of expenses incurred by the assessee for advertisement, marketing and promotion ["AMP"] for brand- building for brand owned by the associated enterprise? (b) Whether the ITAT was justified on fac