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2013 (1) TMI 797 - ITAT MUMBAIDetermination of arms length price - Nature of Business - whether support services or merchant banking - Selection of comparables to determine ALP - International transaction like consultancy Services, reimbursement of expense, recovery of expenses incurred and receipt of share application money - Held that:- TPO has rejected the comparables selected by the assessee on the ground that the activities of the assessee are of investment advisory services and not of support services. Held that:- The primary role of the assessee is limited to collecting information, providing recommendations and advice on the basis of information collected - assessee has no functional, asset and business risk - assessee has no role in transfer of funds or investment in India - assessee has located the comparables which are in similar activity of advisory/support services - assessee is providing only advisory services and support services to its AE, who in turn takes a decision for potential investment - It is that the assesse’s role is only to furnish the requisite information and not to participate in the actual decision making - Comparables selected by assessee are correct - Decided in favor of assessee Held that:- As regards to the adjustment of +/-5% can be made when some real and accurate effect of such differences are brought on record - assessee has not properly quantified the alleged adjustments on account of differences in asset employed and risk assumed - Decided against the assessee
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