Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 648 - ITAT MUMBAIDetermination of ALP u/s 92C(2) r.w. Section 92C(2A) of the Act - Selection of Comparables - Whether Motilal Oswal Investment Advisors Pvt. Ltd. can be considered as a comparable for the determination of ALP – Held that:- The three comparables considered by the TPO shows that M/s. Future Capital Investment Advisors Ltd., has operating profit at 21.79% whereas OPM of Motilal Oswal Investment Advisors Pvt. Ltd. is 72.33% - The comparables used by the TPO themselves are showing extreme OPM - A perusal of the Director’s report of Motilal Oswal Investment Advisors Pvt. Ltd. shows that the company has completed 23 assignments successfully as against 14 completed in the immediately preceding year - the income from operations have been shown only as advisory fees whereas it is admittedly an undisputed facts that the said company is engaged in diversified activities - Segmental reporting is not available. Profit and loss account appears to be only of consolidated accounts - The company is registered with SEBI as a merchant banker and the Director’s report show that it is into takeover , acquisitions, disinvestments etc. - In the absence of specific data it is not possible to make comparison - the company being into merchant banking and cannot be considered as a comparable – thus, the AO is directed not to consider Motilal Oswal Investment Advisors Pvt. Ltd. as a comparable for the determination of ALP and redetermine the Arm’s Length price excluding Motilal Oswal Investment Advisors Pvt. Ltd. – Decided partly in favour of Assessee
|