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2022 (9) TMI 602 - HC - Income TaxTP Adjustment - comparable selection - Whether Tribunal was right by holding that M/s. Integrated Capital Services Ltd. and M/s. Motilal Oswal Investment Advisors Pvt. Ltd. are to be excluded and M/s. ICRA Management Consulting Services Ltd. and M/s. IDC Ltd. are to be included as comparables? - HELD THAT:- Whether Integrated Capital Services Ltd. and Motilal Oswal Investment Advisors Pvt. Ltd., which are engaged in providing investment banking services, could be declared as comparable to a company which was providing investment advisory services is no longer res-integra. As in the case of Carlyle India Advisors (P.) Ltd. [2013 (4) TMI 486 - BOMBAY HIGH COURT] as already held that the case of an investment advisor or sub-advisory cannot be compared with a merchant banker or investment banker. This view was reiterated in the case Blackstone Advisors India (P.) Ltd.[2019 (10) TMI 1509 - SC ORDER] Thus Integrated Capital Services Ltd. and Motilal Oswal Investment Advisors Pvt. Ltd cannot at all be held as comparables with the assessee company. For IDC India Limited - As this Court in Commissioner of Income-tax-3, Mumbai Vs. General Atlantic (P.) Ltd. . [2016 (3) TMI 736 - BOMBAY HIGH COURT] the Tribunal adopted only IDC India Ltd. as comparable. The Tribunal had adopted IDC India Limited, which was common between the Revenue and the assessee, as comparable to determine the Arm’s Length Price, while rejecting the other eight comparables selected by the Revenue. The decision of the Tribunal was challenged by the Revenue in appeal, which was dismissed in Carlyle India Advisors (P.) Ltd. [2013 (4) TMI 486 - BOMBAY HIGH COURT]. ICRA Management Consulting Services Ltd. - Tribunal relied upon the decision of the Temasek Holdings Advisors India Private Limited [2014 (11) TMI 483 - ITAT MUMBAI] and held that the same to be a good comparable in view of the fact that it was offering consultation services in the area of strategy, risk management and operations regulatory economics and translations Advisory and that its entire revenue was being generated from consultation fees. Respondent relied upon an order [2022 (3) TMI 1421 - BOMBAY HIGH COURT] in the case of the assessee, in which a similar issue was raised and rejected and the appeal dismissed. We are of the view that no interference is warranted in the order passed by the Tribunal.
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