2015 (4) TMI 1011

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....l contentions have been heard and record perused. Facts in brief are that assessee is a wholly owned subsidiary of Tiger Iron Ore and is engaged in providing non-binding investment advisory support services to its AE primarily with respect to the Indian market. During the course of scrutiny assessment, the AO made adjustment of Rs. 2,63,16,222/- in respect of international transaction of provision of investment advisory services. The AO noted that as per the Transfer Pricing Study Report (TPSR), the assessee has provided sub-advisory services to its AE during F.Y.2009-10. The assessee earned a mark-up of 19.70% on provision of investment advisory services. The assessee adopted TNMM method with following comparable for the justification of A....

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....Oswal Investment Advisory Pvt. Ltd. was excluded from the list of comparables on the plea that it was not functionally comparable. Following decisions were placed on record :- i) Acumen Fund Advisory, ITA No.143/Mum/2014, dated 4-7-2014; ii) Bain Capital Advisors (India) Pvt. Ltd., ITA No.1360/Mum/2014; dated 5-1-2015; iii) Carlyle India Advisors Pvt. Ltd., ITA No.7367/Mum/2012, dated 7-2-2014; iv) Carlyle India Advisors Pvt. Ltd., ITA No.2200/Mum/2014, dated 22-8-2014; and v) Actis Advisers Pvt. Ltd., ITA No.1998/Del/2014, dated 17-10-2014 6. On the other hand, it was the contention of ld. DR that M/s Motilal Oswal Investment Advisory Pvt. Ltd. was also engaged in providing investment advisory services, therefore, lower authorit....

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....r acquisitions. The Private Equity business over the last three years has also resulted in a good pipeline of IPOs in the coming year. 9. In view of the above observations regarding nature of business carried on by Motilal Oswal and the judicial pronouncements, it is crystal clear that in addition to investment advisory services in which assessee was involved, M/s Motilal Oswal Investment Advisory Pvt. Ltd. was engaged in diversified activities and registered with SEBI as a merchant banker. Thus, M/s Motilal Oswal Investment Advisory Pvt. Ltd. is functionally different from the assessee. Accordingly, we direct the AO to exclude M/s Motilal Oswal Investment Advisory Pvt. Ltd. form the list of comparables. 10. From the record we found that ....