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2021 (6) TMI 5 - AT - Income TaxTP Adjustment - DRP fixing the assessee’s arms length margin at 42.40% for its international transactions - Comparable selection - Exclusion of Motilal Oswal Private Equity Advisory Private Limited - HELD THAT:- We find that the assessee company before us, provides non-binding and non discretionary investment advisory and other related services to its AEs and the Funds in relation to investments made by the Funds situated in overseas location. From the perusal of various functions performed by the assessee company which are detailed hereinabove, we find that the functions performed by the aforesaid comparable company is functionally dissimilar with that of the assessee company. Hence in view of the same and also by respectfully following the said decision of this tribunal in the case of Bain Capital Advisors(India) Ltd [2019 (6) TMI 1622 - ITAT MUMBAI] we direct the ld. TPO / ld AO to exclude Motilal Oswal Private Equity Advisory Private Limited in the final list of comparables for working out the arithmetic mean margin of the comparables. Exclusion of Ladderup Corporate Advisory Pvt Ltd - We find that the assessee company before us, provides non-binding and non discretionary investment advisory and other related services to its AEs and the Funds in relation to investments made by the Funds situated in overseas location. From the perusal of various functions performed by the assessee company which are detailed hereinabove, we find that the functions performed by the aforesaid comparable company is functionally dissimilar with that of the assessee company. Hence direct the ld TPO / ld AO to exclude Ladderup Corporate Advisory Pvt Ltd in the final list of comparables for working out the arithmetic mean margin of the comparables. Inclusion of Cyber Media Research Limited - AR before us submitted that the same rate may be applied for other two AEs also. We find that the ld DR vehemently raised objection to this argment advanced by the ld AR by stating that APA rate could be adopted only when mechanism provided in Rule 10B of the Rules fails. We find that this aspect of the issue need not be gone into by us at this stage in view of our aforesaid decision taken on the exclusion of 2 comparables and inclusion of 1 comparable supra. Accordingly, the issue raised by the assessee with regard to APA rates and objection raised by the ld DR are left open and we refrain to give any opinion in that regard. Accordingly, we direct the ld TPO / ld AO to recompute the arithmetic mean margin of the comparable companies after excluding Motilal Oswal Private Equity Advisory Private Limited and Ladderup Corporate Advisory Pvt Ltd and after including Cyber Media Research Limited from the final list of comparables retained after directions of ld DRP. Accordingly, the Ground No. 1.3. with regard to these comparables alone, raised by the assessee is allowed.
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