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2018 (8) TMI 1950 - ITAT MUMBAITP Adjustment - rejection of Motilal Oswal Investment Advisors Pvt. Ltd. selected by the Transfer Pricing Officer as a comparable - HELD THAT:- Assessee is engaged in the business of financial advisory services and in the relevant previous year, it has entered into international transaction relating to provision of investment sub–advisory services to its overseas Associated Enterprise (AE). Motilal Oswal Investment Advisors Pvt. Ltd. company is into diversified activities including merchant banking / investment banking concerning private placement of equity, debt and convertible instrument covering international and domestic market, mergers and acquisitions, advisory and re–structuring advisory and implementation - also offers services like private wealth management, asset management and commodities. From the documentary evidences produced by the assessee, he found that though the income stream in the audited account is shown to be from advisory services, however, the nature of the services is entirely different. Further, in response to a letter from the assessee the Chief Executive Officer of Motilal Oswal has stated that the company is in merchant banking and investment banking and is not engaged in providing investment research and advisory services. From the audited financials, the segmental details are not forthcoming. Thus, from the aforesaid facts, it can be seen that the company is functionally different from the assessee, which according to the Assessing Officer himself is providing investment sub–advisory services. It is worth mentioning, in a number of decisions of different Benches of the Tribunal, it has been held that Motilal Oswal Investment Advisors Pvt. Ltd. cannot be treated as a comparable to an investment advisory service provider. It appears, the only reason for which the Assessing Officer selected this company as a comparable is because of its extra ordinarily high profit. Therefore, when Motilal Oswal Investment Advisors Pvt. Ltd. on the basis of material on record is found to be functionally different and which fact has not been controverted by the learned Departmental Representative through any cogent material, we do not find any valid reason to interfere with the decision of the learned Commissioner (Appeals) on this issue.
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