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The Tax PublishersITA Nos. 502, 835/Mum/2016
2020 TaxPub(DT) 3902 (Mum-Trib)INCOME TAX ACT, 1961
Section 92C
In order to identify companies which are providing services in the nature of investment advisory services as rendered by assessee, search criteria was widened to a more general industry criterion in order to identify companies engaged in providing management consultancy support and advisory support services earning fee based income and carrying limited risks and accordingly IMCSL was considered as a comparable given that it was engaged in provision of management consulting and business advisory services.
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Transfer pricing - Determination of ALP - Selection of comparables - Comparability of investment advisory services and management consultancy services
Assessee rendered non-binding investment advisory services to its AE abroad. TPO considered ICRA Management Consulting Services Ltd. ('IMCSL') as not comparable to assessee's case on the reasoning that IMCSL was engaged in providing management consultancy support and advisory support services. Held: In order to identify companies which are providing services in the nature of investment advisory services as rendered by assessee, search criteria was widened to a more general industry criterion in order to identify companies engaged in providing management consultancy support and advisory support services earning fee based income and carrying limited risks and accordingly IMCSL was considered as a comparable given that it was engaged in provision of management consulting and business advisory services.
Relied:Goldman Sachs (India) Securities Private Ltd. v. Dy. CIT [ITA No. 927/Mum/2016 & ITA No. 902/Mum/2016] : 2017 TaxPub(DT) 766 (Mum-Trib), Pr. CIT-14 v. AGM India Advisors Private Limited [ITA No. 1377 of 2017] : 2020 TaxPub(DT) 2492 (Bom-HC) (Bom-HC), Carlyle India Advisors Pvt. Ltd. v. Asst. CIT [ITA No. 2410/Mum/2016 and ITA No. 2506/Mum/2016], and Temasek Holdings Advisors India Private Ltd. v. Dy.CIT [ITA No. 477 & 816/Mum/2016] : 2017 TaxPub(DT) 4959 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 92C
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