TaxTMI 
TaxTMI 
2016 (9) TMI 1391
X X X X Extracts X X X X
X X X X Extracts X X X X
....tional transactions' on the basis of the order passed under section 92CA(3) of the Act by the TPO. 2.1 That the DRP/AO erred on facts and in law in arbitrarily holding that the appellant is engaged in providing 'financial advisory services' and also erred in comparing the appellant with the companies, viz., Apitco Ltd. Pushpak Financial Services Ltd., TSR Darashaw Limited, which are engaged in the business of stock broking and trading of shares. 2.2. The DRP/AO erred on facts and in law in disregarding the benchmarking analysis undertaken by the appellant applying internal TNMM in the Transfer Pricing Documentation allegedly holding that: (i) The segmental analysis/profitability undertaken by the appellant in the Transfer Pricing Documentation is not appearing in the audited financial statement (ii) The internal TNMM, applied by the appellant, is a sort of CUP and accordingly, strictly comparability is required for applying CUP method (iii)The services provided to the associated enterprises and non-associated enterprises are not identical. (iv)The details of services and billing structure of the associated enterprise....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rred on facts and in law in levying interest under Section 234B of the Act. The appellant craves leave to add, amend, alter or vary, any of the aforesaid grounds of appeal before or at the time of hearing of the appeal." 2. Referring to the facts, qua the issues raised the Ld.AR stated that though he is confident that as per settled legal principles and judicial precedent the assessee is confident of its success in regard to its prayer in Ground Nos. 2.3 and 2.4. However, the request for admitting fresh evidences in regard to which application under Rule 29 is on record and prayer for remand in view of the prayer in Ground No.2.2 it was submitted that following the judicial precedent, the issue in order to correctly characterise the taxpayer may be restored to the TPO. Referring to the arguments advanced in 2010-11 assessment year in ITA No.979/Del/2015, it was his submission that although herein also considering the precedent available, the comparables selected will need to be excluded as not only the comparable selected suffer on account of the fact that some of them unlike the taxpayer in the present proceedings, are engaged in financial trading activities but even o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the TPO in para 1 and 3 of his order has extracted the activities as under:- 1. Taxpayer's profile "Control Risk India Pvt. Ltd. the company is a 100% subsidiary of control risks group holding Ltd., London. During the financial year 2010-11, Control Risk India Private Limited for the purpose of business of consulting business intelligence services, fraud investigation, etc. entered into the cross border transaction with its offshore affiliates." ................... 2. "In respect of Functional Profile of the assessee, it is reported in your Transfer Pricing report in page 5 that Control Risks India Private Limited was incorporated in August, 2007 for offering a comprehensive range of consultancy services that assist clients to manage political, security, operational and integrity risks at every stage of an investment." (emphasis provided) 4.1. However, thereafter he concluded in para 5.1 internal page 13 that "As per the TP report submitted, taxpayer is engaged in providing investment and other financial advisory to its AE ......................" 4.2. Accordingly as a result of the above wrong characterization, the consequential st....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Security Consultancy These are further divided into: Security Management and Consultancy 4.13 No two organizational entities are alike and that a whole host of issues such as nature of their business, profile of employees and the geographical spread of their assets, uniquely determine their level of exposure. Further, company success is underpinned by its assets and protecting than in hostile and complex business environments is vital to the competitive advantage of any commercial entity. 4.14 Control Risk advice organizations on developing and implementing an overall corporate security strategy and also advice on how to reduce the risks to their most valuable assets-people, reputation, information and physical assets. Crisis Management 4.15 Protecting organization's reputation, environment, key business assets, employees and other stake holders is an ongoing challenge especially in the face of extreme,, complex and constantly changing risks. 4.16 Control Risks crisis management consultants identify the threats and risks to the organization. It support in developing and implementing systems and strategies to manage....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... order dated 27.09.2016. The evidences have been considered to be relevant and crucial for determining the issues as it elaborates and supports the original claims of the tax payer. Accordingly following the judicial precedent the evidences are admitted. Since the evidences have to be considered for the first time again following the precedent these are remitted to the TPO with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. 6. The next issue agitated by the taxpayer and argued before the Bench is Ground No. 3, the relevant facts are found addressed in para 4 of the assessment order:- 4. Disallowance of late deposit of TDS 4.1. "During the course of assessment proceedings, the AR of the assessee company was asked to show cause as to why not late deposit of TDS amounting to Rs. 5,35,884/-to be added the income. In response to the same, the AR of the assessee company submitted its reply vide its letter dated 27.02.2015, wherein stating that in the assessment year under consideration i.e. assessment year 2011-12, the assessee has paid an amount of Rs. 5,35,894/-on account of interest ....