TaxTMI 
TaxTMI 
2018 (6) TMI 1821
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.... transactions of provision of corporate research services at Rs.30,05,63,588 instead of Rs. 23,19,16,428 determined by the Appellant; 2. disregarding the appellant's Transfer Pricing documentation and conducting his own comparability analysis which is not in accordance with the contemporaneous documentation requirement of the Indian TP regulations; 3. requiring financial data of only the current year (FY 2007-08) of the comparable companies to be used for benchmarking the Appellant's international transactions; 4. not granting working capital adjustment and risk adjustment to the Appellant to account for the differences in the working capital and risk profile-of the comparables vis-a vis the Appellant; 5. the learned AO be directed to grant (+/-) 5% benefit as available under proviso to Section 92C(2) of the Act. 6. The AO erred in law and in facts in disallowing Rs. 29,31,485 u/s 438 (f) completely ignoring the assesses contention of a deduction of an equal amount u/s 10A of the Act. 7. Alternatively, the AO further erred in considering section 10A as a deduction as against exemption from total income and therefore erro....
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.... for improving the overall quality of the services to be provided by it and also try to find out new ways of performing the services to improve the overall efficiencies of the employees. g. Quality Check: Pipal India adheres to an internal quality standard during the provision of services to Pipal USA. Pipal India through its experienced employees checks the deliverables considering quality required by Pipal USA. 3. Being a captive service provider the assessee is exposed to very limited risk and in so far as tangible assets are concerned they are mostly relating to networking equipments, computers, furniture and fixtures, office equipments, software etc. It does not deploy any intangible assets for carrying out business and investment research services. During the year under consideration the provision of ITe services was shown at Rs. 23,19,16,428/-. For benchmarking the margin from such transaction with its AE, the assessee adopted TNMM as most appropriate method by taking PLI as OP/direct cost. The assessee's PLI was arrived at 21% on the direct cost. In the TP study report the assessee selected four comparables companies namely:- No. Name Weighted ....
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....ons:- - Assistant Commissioner of Income-tax, Circle 3 (1), New Delhi v. Convergys India Service (P.) Ltd.(55 Taxmann.com 30) - Nokia India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle -13(1), New Delhi (52 Taxmann.com 492) - Deputy Commissioner of Income-tax- 6(3),Mumbai v. Matrix India Asset Advisors (P.) Ltd.(49 Taxmann.com 151) - Assistant Commissioner of Income-tax, 11 (1), Mumbai v. Zee Entertainment Enterprises Ltd.*(51 Taxmann.com 231) - Deputy Commissioner of Income-tax, Circle 12 (1), Bangalore v. Misys Software (I) (P.) Ltd.*(56 taxmann.com 332)" 7. On the other hand Ld. DR submitted that this company was selected by the assessee which has been accepted by the TPO and this point was not raised before the DRP. In any case without prejudice, he submitted that in case if it is to be included or excluded on the basis of RPT filter, then the matter should be restored back to the file of the AO / TPO to verify the contention of the assessee. 8. After considering the aforesaid submissions and on perusal of the matter placed on record, we find that one of the main objections raised by the ....
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....cluded from the company providing investment advisory services:- - Avenue Asia Advisors (P.) Ltd. vs. DCIT (2017)(85 Taxmann.com 311)(Delhi High Court) - Temasek Holding Advisors (I) Pvt. Ltd. vs. DCIT (ITA No. 4203 and 4503/Mum/2012) - Temasek Holding Advisors (I) Pvt. Ltd. vs.DCIT (ITA No. 5395 and 5616/Mum/2009) - Xander Advisors India Pvt. Limited vs. ACIT - TPG Capital India Pvt. Limited vs. ACIT (ITA No. 880/Mum/2013)(Mum) 10. On the other hand, Ld. DR strongly relied upon the order of the TPO and DRP and submitted that overall comparability has to be seen and this company is also into financial sector and investments. Therefore, the reasoning given by the AO for inclusion of the said company should be upheld. 11. After considering the relevant finding given in the impugned order as well as the submission made by the party, we find that Brescon Corporate Advisors Ltd. are not only into advisory services but also into merchant banking, financial restructuring and syndication of debt. Whereas the assessee company as discussed above is purely providing investment advisory services and none of its activities are into merchant ban....
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.... - Private Client Broking: It involves providing advisory based brokerage services with a strong emphasis on research and value added services. - Portfolio Management Services: It involves providing high net worth individuals with investment advisory, planning and asset deployment advise, asset allocation and distribution of a wide range of products. 13. On the other hand Ld. DR strongly relied upon the order of the TPO and DRP. 14. After considering the relevant finding given in the impugned order as well as material preferred to before us, we find this company apart from providing corporate advisory services is also providing institutional equity sales, sales trading and research, private client broking and portfolio management services. It also provides corporate advisory services. It also provides a broad range of services including equity capital market transaction, mergers and execution advisory and other such similar services. From the perusal of the annual report and profit and loss account, we find following streams of income:- SCHEDULE For the year ended March 31, 2008 Rs. Income Brokerage 79,647,841 Corporate Advisory Services ....