TaxTMI 
TaxTMI 
2014 (10) TMI 864
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....Rs. 122,087,265 as proposed by the Learned Transfer Pricing Officer-I (I), New Delhi (hereinafter referred to as 'Ld. TPO')/ Ld. AO in its draft assessment order under section 143(3) read with section 144C] by holding that its international transaction pertaining to provision of non-binding financial advisory and consultancy services do not satisfy the arm's length principle prescribed under the Income Tax Act, 1961 ('the Act'). 3. On facts and in law, the Hon'ble DRP, Ld. AO and Ld. TPO erred in disregarding the Assessee's use of multiple year/ prior years' data in contravention of the provision of section 92C of the Act read with Rule 10B and Rule 10D(4) of the Income Tax Rules, 1962 ('Rules'). 4. On facts and in law, the Hon'ble DRP, Ld. AO and Ld. TPO erred in disregarding the doctrine of impossibility of performance in contravening Section 92D of the Act read with Rule 10D(4) of the Rules, which mandate the use of contemporaneous data for the determination of ALP of international transactions. 5. On facts and in law, the Hon'ble DRP and Ld. AO erred in confirming the action of the and Ld.TPO of modifying adding the selectio....
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....of the Appellant and re-computing the Profit Level Indicator CPLI') after considering such reimbursements as part of the operating revenue and operating cost. 11. On facts and in law, the Hon'ble DRP, Ld. AO and Ld. TPO erred in not providing the benefit of (+/-) 5 percent range mentioned in proviso to section 92C(2) of the Act while computing the ALP. 12. On the facts and in the circumstances of the case, the Ld. AO erred in initiating penalty proceedings under section 271 (1)( c) of the Act. 13. On the facts and in the circumstances of the case, the Ld. AO erred in levying interest under section 2348 and 234C of the Act. 14. On facts and in law the Ld. AO made computational errors in calculating the interest under section 2348 and 234C of the Act. The above 'Grounds of Appeal' are all independent and without prejudice to one and another. The appellant also craves leave to supplement, to cancel, amend, add and/or otherwise alter or modify, any or all, grounds of appeal stated hereinabove." 2. Facts in brief: The assessee is a company and it filed its return of income declaring income of Rs. 7,12,35,854/-. The profile of the assessee and of group are b....
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.... investment and disposition opportunities in India. The services/ functions performed by Actis India in this regard are subject to agreement entered between AEs and Actis India. Under the agreement, Actis India shall, inter-alia: a) Identify, create, evaluate, screen, review, conduct due-diligence, carry out investment analysis and research, report on new opportunities for the possible investment by the funds managed by the AE, and advise on such particular factors relating thereto as Actis India considers relevant for consideration by the AE; b) Identify, create, evaluate, screen, review, conduct due diligence, carry out investment analysis and research, report on new opportunities for the possible disposal of an investment and advise on such particular factors relating thereto as Actis India considers relevant for consideration by the AE; c) In its capacity as advisor, recommend for consideration by the AE from time to time, the purchase or sale of particular investments or proposed investments, and recommend to the AE from time to time regarding the amount and the terms for the proposed purchase/ sale; d) Monitor and evaluate the progress of all investments and report on....
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....aves us with ground No 2,6,7,10 and 11. 4.5. Ground No.2 read with ground Nos. 6 and 7 are on the issue of selection of comparables. 5. We first take up the arguments of the assessee that DRP and the AO have erred in selection of Motilal Oswal Investment Advisors (P) Ltd., as a comparable. The submissions of the Assessee on this issue is that the functional profile of M/s Motilala Oswal Investment Advisors (P) Ltd., is not comparable to the functional profile of the assessee and that it was held so by the Tribunal in the case of M/s Carlyle India Advisors (P) ltd., Vs DCIT, Circle 10(1) Mumbai in ITA No.7367/MUM/2012 of ITAT "K" Bench of the Mumbai Tribunal vide order dt. 07.02.2014. 5.1. Ld. DR relies on the order of the DRP and also on the functional profile of M/s Motilal Oswal Investment Advisors(P) Ltd., given in the Transfer Pricing report. Alternatively and without prejudice Mr.Peeyush Jain argued that the issue should be set aside to the file of AO with the direction that segmental data should be obtained and income that is attributable to the functions which are not comparable with the functions of the Assessee be eliminated and comparison done. 5.2. Dr.Rakesh Guptha, ....
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....ount appears to be only of consolidated accounts. The said company is registered with SEBI as a merchant banker and the Director's report show that it is into take over, acquisitions, disinvestments etc. In the absence of specific data it is not possible to make comparison. It can therefore be safely said that the said company being into merchant banking and cannot be cosndiered as a comparable. We, accordingly direct the AO not to consider MOIA Pvt.Ltd. as a comparable for the determination of ALP and redetermine the ALP excluding MOIA Pvt.Ltd. (as per our findings) and including M/s IDC( as per the directions of the DRP) in the light of the provisions of S.92C(2) r.w.s. 92C(2A) of the Act. Ground no. 4.1 and ground no.9 are accordingly allowed. 5.5. This decision is followed by another Co-Ordinate Bench of the Mumbai Tribunal order in ITA No. 2200/MUM/2014 in the AY 2009-10 in the case of the same assessee i.e., M/s Carlyle India Advisors Pvt.Ltd. vs. DCIT vide order dt 22.02.2014. 5.6. The alternative plea of the Ld., DR that the issue should be set aside to the file of the AO for considering the segmental profits is rejected for the reason that the Co-Ordinate Bench of th....
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....are required under AS-17, other than those already provided in the financial statements". As per the website http://www/cybermedia.co.in/static/products, the company has following products since long time ago: Products: When Cyber Media launched its first product in 1982, Dataquest, a print magazine on computers (which was barely a $ 20 million industry those days) and the first computer magazine, it was with a clear focus which was to educate India about technology and facilitate computer users to leverage information technology to bring about progress within the country. Dataquest completes 3 decades this year and continues to maintain similar objectives. Though these 3 decades, CyberMedia has launched numerous media properties for the B2B communities which has made it the largest specialized media house in the country. Today its offerings span from multiple products for the information technology sector to the biotechnology sector, the telecom sector, the outsourcing space the entrepreneurs community and more. CyberMedia today has 12 print properties, 30 online properties and does more than 150 events (in various formats) for the specialized sector. Besides India CyberMedia ....