TMI Blog2020 (3) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... Courts including Hon'ble Jurisdictional High Court have consistently held that this company cannot be a comparable to a non binding investment advisory service provider. ICRA ONLINE LIMITED - as relying on AGM INDIA ADVISORS PRIVATE LIMITED [ 2016 (5) TMI 1335 - ITAT MUMBAI] ICRA company cannot be a comparable to an investment advisory service provider. In fact, while considering the comparability of this company in assessee s own case for the assessment year 2012 13, the Transfer Pricing Officer himself has categorically stated that none of the segments of ICRA Online Ltd. are comparable to investment advisory services rendered by the assessee and accordingly rejected it as a comparable. In our considered opinion, facts are not di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es provided to the Associated Enterprises (AE). 3. Brief facts are, the assessee, a resident company, is a subsidiary of Khazanah National Berhad (KNB), Malaysia. As stated by the Transfer Pricing Officer, KNB is an investment holding arm of the Government of Malaysia and the assessee provides non binding investment advisory services to KNB. During the year under consideration, the assessee earned revenue of ₹ 19.09 crore for provision of investment advisory services to the AE. The aforesaid transaction with the AE was benchmarked by the assessee adopting Transactional Net Margin Method (TNMM) as the most appropriate method with Operating Profit/Operating Cost (OP/OC) as the Profit Level Indicator (PLI). For comparability purpose, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded as transfer pricing adjustment to the arm s length price. On the basis of transfer pricing adjustment proposed by the Transfer Pricing Officer, the Assessing Officer framed the draft assessment order. While considering assessee s objections against the draft assessment order, learned DRP upheld the decision of the Transfer Pricing Officer. 5. The learned Authorised Representative submitted, the assessee is disputing only two comparables viz. Motilal Oswal Investment Advisories Pvt. Ltd. and ICRA Online Ltd. He submitted, if these two comparables, which in any case are not comparable to the assessee, are excluded, assessee s margin would be within the acceptable range. Hence, no further adjustment would be required to be made to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the material on record. From the material placed on record it is very much clear that this company is engaged in the business of investment banking, merchant banking, merger and acquisition, private equity, syndication, etc. Whereas, the assessee has only one segment of providing non binding investment advisory services to the AE. Looking at the functional profile of this company, not only different benches of the Tribunal, but even different High Courts including Hon'ble Jurisdictional High Court have consistently held that this company cannot be a comparable to a non binding investment advisory service provider. In fact, it has come to our notice that even in case of a number of investment advisory service providers, the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omparable. In support, he relied upon the decision of the Tribunal in AGM India Advisors Pvt. Ltd. vs/ DCIT, ITA no.4757/Mum./2015, dated 18th May 2016. 11. The learned Departmental Representative strongly relied upon the observations of learned DRP and Transfer Pricing Officer. 12. We have considered rival submissions and perused the material on record. On a perusal of the materials available on record it is noticed that this company has multiple segments, such as, outsourcing service, information service and software products service. None of these segments are comparable to the non binding investment advisory service provided by the assessee. Finding functional dissimilarity between this company and a simple advisory service prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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