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2018 (8) TMI 1902 - ITAT MUMBAITP adjustment - transaction pertaining to provision of non-binding investment advisory services by the Appellant to its overseas associated enterprise (AE) using Transactional Net Margin Method (TNMM) as the most appropriate method - comparable selection - HELD THAT:- Assessee is rendering investment advisory services to its associated enterprise thus companies thus companies functionally dissimilar with that of assessee need to be deselected from final list. Since we have accepted the plea of the assessee for exclusion of Ladderup Corporate Advisory Pvt. Ltd. and inclusion of Informed Technologies India Ltd. as a comparable, considering the aforesaid submissions, there does not remain a need to adjudicate on the other pleas for inclusion of the other two concerns, namely, ICRA Management Consulting Services Ltd. and IDC (India) Ltd. In view of the aforesaid, we direct the Assessing Officer to recompute the arm’s length price of the international transactions of providing investment advisory services, as per our aforesaid directions. Disallowance u/s 14A - HELD THAT:- As per the learned representative, in the absence of any receipt of exempt dividend income during the year under consideration, the disallowance u/s 14A of the Act is not merited. The aforesaid proposition of the assessee is fully supported by the judgment of the Hon'ble Delhi High Court in the case of Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT] . Insofar as the fact-position of absence of any exempt income is concerned, the ld. CIT-DR has also not controverted the same and, therefore disallowance u/s 14A of the Act is directed to be deleted.
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