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TMI Blog2020 (12) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... nate bench in ITA No. 4287/Del/2014 for the Assessment Year 2009-10 dated 12.03.2018 wherein, the question before the Hon'ble High Court was "Did the Tribunal (ITAT) fall into error in excluding the two comparable i.e. Keynote Corporate Service Ltd and Motilal Oswal Investment Advisors Pvt. Ltd. ?" 2. The Hon'ble High Court vide the above order has sent back the issue of the exclusion of the above two comparables allowing the appeal of the revenue two to reconsider the functional similarity and dissimilarity afresh. Therefore, the matter is remanded back to the coordinate bench. 3. ITA No. 4294/Del/2014 decided by the coordinate bench for AY 2009-10 on 19.09.2017 was also contested by the Pr. CIT-2 before the High Court. The Hon'ble Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctionally different. He further referred to several judicial precedents wherein, in case of some other assessee's, the coordinate benches have held that Keynote Service Ltd is not a good comparable. 7. The ld DR vehemently supported the order of the learned transfer pricing officer. He submitted that for the related party transaction filter the learned TPO has correctly included Motilal Oswal as it passed all the filters. He therefore submitted that merely comparing the expenses of that comparable with the related party expenses, does not make it a non comparable. He referred to page number 38 - 39 of the order of the learned transfer pricing officer wherein he stated that the related party transaction has been measured with respect to sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted as a lead manager in various initial public offerings and right issues. This functional dissimilarity has been dealt with in the last paragraph at page number 37 of the order of the learned transfer pricing officer wherein it has been stated that this entity has been used as a comparable by the assessee in previous year and in this year too it qualifies as a comparable based on the assessee's own search process. He held that comparable company is also functioning in the domain of financial consultancy and therefore the same will be used for the purpose of benchmarking the transaction of the assessee. The learned CIT - A has given one of the reasons for the exclusion of the above comparable that the dispute resolution panel in the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to exclude the above comparable and accordingly we uphold the order of the learned CIT - A directing its exclusion. 10. With respect to the Motilal Oswal investment advisors private limited, the contention of the assessee has been reproduced at page number 38 of the order of the learned transfer pricing officer wherein it has been stated that it has entered into substantial related party transaction and the details of such expenses were provided. It was noted that out of total expenses of the comparable of Rs 24,73,83,621 out of which the expenditure of Rs. 90,886,291 are paid to the related parties and therefore 36.74% of the total expenditure have been incurred/paid to the related parties. Therefore the contention of the assessee is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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