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2014 (7) TMI 1105 - AT - Income TaxDetermination of arm's length price - exclusion of the 3 comparables - Held that:- The DRP while excluding these three comparables have clearly given a finding to the effect that related party transactions were more than 25% in respect of all transactions entered into with these three comparables namely KLC Capital Services Limited, Quantum Advisors Private Limited and AR Venture Fund Management Limited. In case of KLC Capital Services Limited, the related party transaction (RPT) was found to be 41.45% and thereby earning abnormally high operating profit of 85.22%. Quantum Advisors Private Limited was found to have related party transaction to the extent of 65.39% of total turnover and in case of AR Venture Fund Management Limited, the related party transactions were found to be 53.76% of total turnover. In respect of choosing the comparables having high related party transactions, the issue has been dealt by the coordinate bench of the Tribunal in the case of Willis Processing Services (I) (P) Ltd. Vs. DCIT, reported in [2013 (3) TMI 415 - ITAT MUMBAI], wherein it was observed that comparables having transactions with related party above 25% should be ignored. Respectfully following the aforesaid decision of the Tribunal and also keeping in view the findings recorded by the DRP with regard to percentage of related party transactions, which has not been controverted by the learned DR by bringing any positive material on record, we do not find any reason to interfere in the direction issued by the DRP. - Decided against Revenue.
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