TaxTMI 
TaxTMI 
2015 (9) TMI 948
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.... erred in upholding the action of the Assistant Commissioner of Income Tax, OSD 3(2) ('AO') / the Additional Commissioner of Income-Tax, Transfer Pricing - 1(3), Mumbai of including Motilal Oswal Investment Advisors Private Limited and IDFC Investment Advisors Limited as comparable companies for determining the arm's length price of provision of Investment Advisory Services and thereby making an adjustment of Rs. 1O,1O,77,849.. To the said international transaction of the Appellant. The Appellant prays that the aforesaid adjustment be deleted. 2. On the facts and in the circumstances of the case and in law, the DRP erred in confirming the action of the AO / TPO in not applying multiple year data for comparable companies an....
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....t Advisory Services. Ld. AR placed on record order of Tribunal in assessee's own case for immediately preceding assessment year 2009-2010, wherein the Tribunal has directed the AO to exclude M/s Motilal Oswal Investment Advisors Pvt Ltd from the list of comparables and to recompute the adjustment to be made u/s.92C(1) of the I. T. Act. 4. On the other hand, ld. DR relied on the order of the lower authorities and contended that functions of the assessee are investment, research and advisory which involves research into finance business and other related activities of the corporate which are necessary to make investment related decisions which are similar to the functions of M/s Motilal Oswal Investment Advisors Pvt Ltd. He further contend....
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....erein M/s Motilal Oswal Investment Advisors Pvt. Ltd. was excluded as comparable after having following observations :- "12. .............. The only dispute is whether Motilal Oswal Investment Advisors Pvt Ltd can be considered as a comparable for determination of ALP. A perusal of three comparables considered by the TPO shows that M/s. Future Capital Investment Advisors Ltd., has operating profit at 21.79% whereas OPM of Motilal Oswal Investment Advisors Pvt Ltd is 72.33%. The comparables used by the TPO themselves are showing extreme OPM. A perusal of the Director‟s report of Motilal Oswal Investment Advisors Pvt Ltd shows that during the year under consideration, the said company has completed 23 assignments successfully as agai....
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.... recompute the adjustment to be made u/s.92C(1) & 92C of the Act." 5. As the facts and circumstances during the year under consideration are same, respectfully following the order of the Tribunal in assessee's own case, we direct the AO to exclude M/s Motilal Oswal Investment Advisors Pvt Ltd from the list of comparables and to recompute the adjustment to be made u/s.92C(1) of the I. T. Act. 6. With regard to exclusion of IDFC, contention of ld. AR was that it was a portfolio manager and registered with SEBI to carry out portfolio management services pursuant to the SEBI (Portfolio Managers) Regulations, 1993. Our attention was invited to the Directors' report of IDFC, according to which IDFC Hybrid Infrastructure Portfolio (HIP) was ....