TaxTMI 
TaxTMI 
2020 (1) TMI 1171
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....e assessee is providing Investment Advisory Services. The assessee is subsidiary of Clear Capital Partner, Cyprus. The assessee entered in international transaction within group entity based in Singapore. The assessee applied Transactional Net Margin Method (TNMM) as most appropriate method to benchmark its international transactions. The assessee selected seven comparables to determining the arm's length price of the international transactions. The TPO accepted TNMM as the most appropriate method however, the TPO excluded certain comparables selected by the assessee and introduced fresh comparables. The arithmetic mean of the final set of comparables selected by the TPO was42.66% as against the average weighted margin of the comparable....
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....ions of section 205 of the Act bars the Department to recover TDS amount on whose behalf the amount has already been deducted. 4. Aggrieved against the assessment order the assessee filed appeal before CIT(A). The first appellate authority in respect of TP adjustment granted part relief to the assessee in deleting some of the comparables selected by the TPO . However, the CIT(A) erred in accepting Goldman Sachs and AGM India Advisors Pvt. as comparables. The ld. Authorized Representative for the assessee pointed that both these companies are rendering services to their subsidiaries / AEs only. Thus, they fail Related Party Transaction (RPT) filter. Though their inclusion would not materially effect the result of comparable analysis, howeve....
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....C (%) 1. Future Capital Investment Advisors Ltd. 15.71 2. Future Capital Holdings Ltd.(Segment-Investment advisory) 31.68 3. IDFC Investment Advisors Ltd. 36.62 4. ICRA Online Ltd. 41.77 5. Kshiti Investment Advisory Co.Ltd. 32.33 6. Motilal Oswal Investment Advisors Pvt. Ltd. 97.87 ARITHMETIC MEAN 42.66 7. The assessee assailed the findings of TPO and the final list of comparables before the CIT(A). The CIT(A) finally selected following four comparables. (1) Goldman Sachs (2) AGM India Advisors Pvt. Ltd. (3) ICRA Management Consultancy Services, (4) Future Capital Investment Pvt. Ltd. The limited contention of the ld. Authorized Representative for the assessee is that though with the set of comparables....
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....he deductor has confirmed deduction of tax at source on interest payments to the assessee. 9. The Hon'ble Bombay High Court in the case of Yashpal Sahni (supra) has held that where the assessee has been able to establish that the tax has been deducted at source, section 205 of the Act bars to recover TDS amount from the assessee (deductee). The relevant extract of the judgment of Hon'ble High Court in this regard is reproduced herein below:- 24. As stated earlier, in the present case the petitioner-assessee has established that from his salary income, tax has been deducted at source by the employer-respondent No. 6 and, therefore, the revenue has to recover the said TDS amount with interest and penalty from the respondent No. 6 a....
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....ccount of tax credit mismatch in such situations cannot be enforced coercively. 2. However, instances have come to the notice of the Board that these directions are not being strictly followed by the field officers. 3. In view of the above, the Board hereby reiterates the instructions contained in its letter dated 01.06.2015 and directs the assessing officers not to enforce demands created on account of mismatch of credit due to non-payment of TDS amount to the credit of the Government by the deductor. These instructions may be brought to the notice of all assessing officers in your Region for compliance" 10. Thus, in view of judgment of Hon'ble Jurisdictional High Court(supra) and the Office Memorandum issued by CBDT(supra), we ar....