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2015 (6) TMI 594 - AT - Income TaxTransfer pricing adjustment - inclusion of Motilal Oswal Investment Advisors Private Limited in the final set of comparables challenged - Held that:- It is starkly evident that the said concern M/s. Motilal Oswal Investment Advisors Private limited is engaged in qualitatively different and diversified business activities, whereas the activities of the assessee are confined to rendering non-binding investment advisory for its Associated Enterprises. The activities of the M/s. Motilal Oswal Investment Advisors Private limited noted by the Tribunal in the case of Carlyle India Advisors Private Limited (2014 (2) TMI 648 - ITAT MUMBAI ) for assessment year 2008-09, are clearly emerging in the instant year too and, therefore, it cannot be said to be a concern which is comparable to an entity which is rendering non-binding advisory investment services alone. Thus, in our considered opinion, the assessee is justified in seeking the exclusion of the said concern from the final set of comparables on account of functional dissimilarities. In fact, in other precedents cited by the ld. Representative for the assessee, the said concern has also been excluded from the set of comparables under similar circumstances. Disallowance of expenses on foreign travel - A.O. disallowed 50% of the expenditure primarily on the ground that the assessee did not furnish evidence to prove business justification for the foreign travel - Held that:- The business purpose relating to incurrence of impugned expenditure is missing. The details provided, which are placed in the Paper Book, do not contain any reference to the business purpose for which the travel had been undertaken by the concerned Directors. No doubt, the assessee is rendering services to its group companies abroad and necessarily the directors would be required to travel, so however where the A.O. has required the assessee to point out the business purpose for which the various tours were undertaken, then, in our view, the failure on the part of the assessee to provide such details does invite a disallowance. Therefore, in our considered opinion, having regard to the material and evidence on record, the A.O. was justified in disallowing a sum of ₹ 29,78,191/- out of the foreign travel expenses. The said action of the A.O. is hereby affirmed. Thus, on this aspect assessee fails. - Decided against assessee.
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