2014 (7) TMI 1105

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....grieved by the direction of the DRP to exclude the cases of (i) KLPG Capital Services Ltd., (ii) Quantum Advisors Pvt. Ltd. and (iii) A.R.Venture Fund Management Ltd. out of 9 as comparables selected by TPO. 3. Grounds taken in Cross Objection by the assessee read as under :- "1. The learned Assessing Officer (' AO') I Transfer Pricing Officer ('TPO') erred in proposing and the learned Dispute Resolution Panel ('DRP') also erred in confirming the rejection of the benchmarking analysis undertaken by the Respondent which was based on contemporaneous data and the Transfer Pricing (TP) study report maintained as per section 92D of the Act read with Rule 10D of the Income-tax Rules, 1962 ('the Rules) and other a....

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....earned AO I TPO erred and the learned DRP also erred in not allowing appropriate adjustments to be made to the comparables as is permitted to be made vide Rule 10B(1)(e)(iii) of the Rules. 7. On the facts and circumstances of the case the learned AO has factually erred in inserting against Item No.3B of Form No.36B an amount of total income of Rs. 39,097,272 as per original order dated 30 December 2013 instead of an amount of Rs. 31,195,513 as per the rectification order under Section 154 of the Act issued by the AO dated 15 January, 2014" 4. Rival contentions have been heard and record perused. Facts in brief are that assessee had provided non binding investment advisory services to its client & AE M/s Matrix Partners India Managemen....

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....ave perused the annual accounts of the comparable and are in agreement with the assessee that this comparable should be excluded in view of high RPT. We direct the AO/TPO accordingly. Quantum Advisors Private Limited: The assessee submitted that Quantum is a SEBI registered Portfolio Manager, managing portfolios for individual Indians, NRl's an FIIs. It is claimed that it has Related Party Transactions to the extent of 65.39% of total turnover. We have considered the assessee's submission and find that the RPT in this year is more than 25%. Accordingly, the TPO is directed to be exclude is company as comparable. A R Venture Fund Management Limited: The assessee submitted that Related Party Transactions constitute 53.76% of tot....