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of <h1>Tribunal excludes one comparable, includes two others in assessment order for A.Y. 2008-09.</h1> <h3>M/s. Blackstone Advisors India Private Limited Versus DCIT Circle 6 (1), Mumbai</h3> The Tribunal allowed the appeal regarding the three comparables in the assessment order for A.Y. 2008-09. Motilal Oswal Private Equity Advisors Pvt. Ltd. ... TP Adjustment - comparable selection - Motilal Oswal Private Equity Advisors Pvt. Limited - HELD THAT:- As the financial statements that the only business income, besides interest and sundry income, derived by it was by way of “investment management fees” only. In the director’s report also, the details of funds collected by it for making investments are mentioned. Both these aspects make it clear that M/s Motilal Oswal Private Equity Advisors P Ltd is engaged only in investment activities for its clients in relevant year also. Hence the Coordinate Benches, in the case of Temasek Holdings Advisors India Pvt. Ltd. [2017 (8) TMI 1490 - ITAT MUMBAI] and Wells Fargo Real Estate Advisors Pvt. Ltd. [2018 (1) TMI 931 - ITAT MUMBAI] have held that the above said company cannot be considered to be a comparable for an investment advisory company. Following the above said decisions, we hold that M/s Motilal Oswal Private Equity Advisors Pvt. Limited cannot be taken as comparable in the hands of the assessee company. IDC (India) Limited company was considered by the co-ordinate bench in the case of Temasec Holdings Advisors (I) P Ltd , [2017 (8) TMI 1490 - ITAT MUMBAI]and it has been held to be a good comparable, as M/s IDC (India) Limited was also engaged in advisory and consultancy and services. M/s ICRA online Ltd is also mostly engaged in investment advisor services only. Accordingly it was held that it is good comparable for comparability analysis purposes. Following the order passed by the Tribunal, we direct the Assessing Officer to include M/s ICRA online Ltd as comparable company. Appeal filed by the assessee with regard to above said three comparables is allowed. Issues:1. Exclusion of Motilal Oswal Private Equity Advisors Pvt. Ltd. as a comparable.2. Inclusion of IDC (India) Limited as a comparable.3. Inclusion of ICRA Online Ltd. as a comparable.Exclusion of Motilal Oswal Private Equity Advisors Pvt. Ltd. as a Comparable:The appeal challenged the assessment order for A.Y. 2008-09, focusing on the exclusion of Motilal Oswal Private Equity Advisors Pvt. Ltd. and the inclusion of two other comparables. The Assessee argued for exclusion based on the company's role as an investment manager, different from the Assessee's investment advisory services. The Tribunal considered previous decisions and financial statements, concluding that the activities and risks involved were distinct, thus Motilal Oswal Private Equity Advisors Pvt. Ltd. couldn't be a comparable.Inclusion of IDC (India) Limited as a Comparable:The Assessee contended that IDC (India) Limited should be included as a comparable due to identical functional profiles. The Tribunal referred to a prior case where IDC (India) Limited was deemed a suitable comparable for advisory and consultancy services. Following this precedent, the Tribunal directed the TPO to include IDC (India) Limited as a comparable company.Inclusion of ICRA Online Ltd. as a Comparable:The Assessee sought to include ICRA Online Ltd. as a comparable, supported by a previous decision where it was considered suitable for investment advisory services. Despite the Department's argument that ICRA Online Ltd. dealt with products, the Tribunal found it mainly engaged in investment advisor services, deeming it a good comparable. Consequently, the Tribunal directed the Assessing Officer to include ICRA Online Ltd. as a comparable company.In conclusion, the Tribunal allowed the appeal concerning the three comparables, directing their inclusion or exclusion based on detailed analysis and comparison with the Assessee's activities. The judgment emphasized the importance of considering functional profiles and activities to determine comparability for assessment purposes.
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