Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 1089 - HC - Income TaxTP Adjustment - comparable selection - exclusion of Motilal Oswal Advisors India Pvt. Ltd (MOIALP) and the inclusion of IDC India Limited (IDCL) and ICRA Management Consulting Services Ltd (ICRA) as comparables for benchmarking of Arms Length Price (ALP) of investment advisory services rendered by the Respondent - HELD THAT:- Admittedly, the Respondent-assessee is engaged in the business of non-binding investment advisory services as against Motilal Oswal Advisors India Pvt. Ltd, which is engaged in merchant banking, securities brokering and other IT-enabled services. DRP held that Motilal Oswal Advisors India Pvt. Ltd (MOIALP) be taken out from the list of valid comparables. In regard to ICRA Management Consultancy Services (ICRA) and IDC India Limited (IDCL), DRP held that the functions performed by ICRA were different from the functions carried out by the Petitioner and ICRA was providing consultancy services and was engaged in management consultancy and therefore, could not be considered as comparable. As regards IDCL, it was held that the same was not engaged in activities of providing investment advisory services and was functionally different from the functions of the assessee. The Tribunal, however, placed reliance upon AGM India Advisors Pvt. Ltd. [2020 (6) TMI 300 - BOMBAY HIGH COURT] wherein it was held that ICRA and IDC were functionally similar to that of the Petitioner in the said Petition as it was providing non-binding investment advisory services. Insofar as Motilal Oswal Advisors India Pvt. Ltd. (MOIALP) is concerned, it has already been held to be not comparable in the case of the assessee itself, in Income Tax Appeal No.30 of 2017, decided 10 June 2019, wherein it has been held that the said company was engaged in merchant banking and registered and established as merchant banker. This view has also been taken in Principal Commissioner of Income Tax Vs. NVP Venture Capital India (P) Ltd. [2018 (9) TMI 1182 - BOMBAY HIGH COURT] Be that as it may, the questions A, B and C as suggested do not give rise to any substantial questions of law.
|