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2018 (4) TMI 1510 - DELHI HIGH COURTTPA - Comparable selection criteria - excluding the two comparables i.e. Keynote Corporate Service Ltd. and Motilal Oswal Investment Advisors Pvt. Ltd. - Held that:- This Court notices that for AY 2007-08, undoubtedly, there were some special reasons inasmuch as Keynote Corporate Service Ltd had undergone amalgamation with another entity. In these circumstances, the question whether Keynote Corporate Service Ltd figures are to be included or not, requires fresh determination, having regard to the specific issue of functional similarity; the matter is therefore, remitted to ITAT. It is open to the ITAT to consider the findings with respect to the preceding years after the amalgamation. ITAT will record its appropriate findings year-wise on the issue of functional similarity. With respect to the inclusion of Motilal Oswal Investment Advisors Pvt. Ltd. ITAT appears to have adopted the formula of percentage of RPT being equal to expenses paid to related parties divided by total expenditure multiplied by 100, only in the case of this entity. While doing so, the ITAT followed its previous ruling in SunGard Solutions (India) (P) Ltd. vs. Dy. DIT, (2014 (12) TMI 429 - ITAT PUNE). This Court is of the opinion that adopting one procedure for only one entity and adopting another for all other entities or comparables can lead to a distorted picture. In these given circumstances this issue too is remanded to the ITAT for fresh consideration.
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