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2018 (11) TMI 1117 - ITAT MUMBAITPA - comparable selection - functionally similarity - Held that:- The assessee is engaged in the business of rendering non-binding investment advisory services to its associated enterprises in respect of unlisted Indian equities. The services provided, inter-alia, include identifying and analysing potential investment opportunities; evaluating and making recommendations to the associated enterprise with respect to investment opportunities; making recommendations to the associate enterprise with respect to specified investments; and, any other advisory services as may be required from time to time. As assessee had pleaded for inclusion of IDC (India) Ltd as well as Informed Technologies Ltd. However, a pertinent plea was raised to the effect that once M/s Ladderup Corporate Advisory Private Limited is excluded and ICRA Management Consulting services Ltd., is included, the resultant margin of the comparables shall compare favourably with the margin of the assessee. Since we have accepted the pleas of the assessee for exclusion of M/s Ladderup Corporate Advisory Private Limited and inclusion of ICRA Management Consulting Services Ltd, the necessity for adjudication of the other pleas for inclusion of IDC (India) Ltd., and Informed Technologies Ltd has been rendered academic and is obviated. Thus, for the aforesaid reasons we do not deal any further. we hereby direct the Assessing Officer to re-determine the total income of the assessee, keeping in view our aforesaid decision. Before parting, we may also put on record another point made by the assessee. The Ld. Representative submitted a chart showing operating margins declared by the assessee from A.Y 2010-11 to A.Y 2015-16. It is pointed out that in the A.Y 2010-11 the margin was 20%, in A.Y 2012-13 the margin was 18.60%, in A.Y 2013-14 the margin was 17.21%, in A.Y 2014-15 the margin was 17.27% and in A.Y 2015-16 the margin was 20%. The aforesaid is sought to be presented to show that the current years margin of 17.41% is quite comparable and is also otherwise justified and does not require any interference. We do not find any reason to adjudicate on this aspect, since we have already adjudicated the specific points raised by the assessee regarding the determination of ALP of the instant international transaction.
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