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2015 (12) TMI 1664 - AT - Income TaxTPA - selection of comparable - Held that:- Motilal Oswal Investment Advisors Pvt Ltd is held as a “merchant banker and investment banker”, which is functionally not similar to that of function of non-binding advisory services. Therefore, after hearing both the parties in this regard, we are of the opinion that Motilal Oswal Investment Advisors Pvt Ltd is not a good comparable in this case. Accordingly, AO is directed to exclude the same from the comparables. IDFC company is engaged in rendering of services as Portfolio Manager, whose functions are intimately different from that of the functions of non-binding advisory services rendered by the assessee to its AEs. The services rendered by the ICRA are more akin to ITeS activities and not the non-binding advisory services. We find merit in the argument of the Ld Counsel for the assessee. Further, Ld Counsel also brought our attention to the fact that the TPO / AO collected some information u/s 133(6) of the Act and made use of the same at the back of the assessee without supplying copies to the assessee. We find merit in the arguments of the Ld Counsel for the assessee that the said information shares with the assessee before they are made use by the TPO / AO. For this limited purpose, we remand this issue to the file of the AO / TPO to re-examine the functions of the said company in depth after supplying the information so collected by them u/s 133(6) of the Act.
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