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TMI Blog2015 (9) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... clusive and non-binding basis, in connection with potential investment opportunities in India. IDFC rendered portfolio management services for hybrid infrastructure portfolio, agriculture opportunities portfolio and farm fork portfolio. IDFC is registered as portfolio managed with SEBI. Thus, IDFC is functionally different from the assessee which is engaged merely in non-binding investment advisory support services. since IDFC is functionally different, we direct the AO to exclude the IDFC from the list of comparables for computing arms’ length adjustment. In view of the above, we direct the AO to recompute the arms length adjustment after excluding Motilal Oswal Investment Advisory Pvt. Ltd. and IDFC from the list of comparables. - Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the action of the AO / TPO in considering provision for bad / doubtful debts as part of non-operating expenses for comparable companies. The Appellant prays that the Ld. AO/ TPO be directed to include such provision as part of operating expenses. 2. Rival contentions have been heard and record perused. Facts in brief are that the assessee company was set up during the financial year 2008-09 as a 99% owned subsidiary of Bain Capital Mauritius, a Mauritius based Private Limited Liability Company. The assessee company is engaged in the business of providing investment research and advisory services to Bain Mauritius, on a non-exclusive and non-binding basis, in connection with potential investment opportunities in India. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt research and advisory. Thus, as per the ld. CITDR, the activities of the two companies are comparable and the TPO after due consideration has taken the M/s Motilal Oswal Investment Advisors Pvt Ltd as suitable comparable while making arms length adjustment to the international transaction of the assessee. 5. We have considered rival contentions, carefully gone through the orders of the authorities below and found that the issue under consideration is squarely covered by the order of Tribunal in assessee s own case in the immediately preceding assessment year 2009-2010 in ITA No.1360/M/2014, vide order dated 5-1-2015, wherein the Tribunal has directed for exclusion of M/s Motilal Oswal Investment Advisors Pvt Ltd from the list of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perations have been shown only as advisory fees whereas it is admittedly an undisputed facts that the said company is engaged in diversified activities. Segmental reporting is not available. Profit and loss account appears to be only of consolidated accounts. The said company is registered with SEBI as a merchant banker and the Director‟s report show that it is into takeover, acquisitions, disinvestments etc. In the absence of specific data it is not possible to make comparison. It can therefore, be safely said that the said company being into merchant banking and cannot be considered as a comparable. We, accordingly, direct the AO not to consider Motilal Oswal Investment Advisors Pvt Ltd as a comparable for determination of ALP . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmitted securities/instruments issued by companies operating in the infrastructure space, and endeavour to achieve risk adjusted medium to long term capital appreciation. The proposed investment strategy would be to provide growth capital for business opportunities especially to mid-sized companies with sound track record and reputation and ride the growth curve with them and to optimize Returns through Portfolio Diversification. 7. On the other hand, ld. DR relied on the order of the lower authorities. 8. We have considered rival contentions and found that assessee is engaged in business of providing investment research and advisory services to Bain Mauritius, on a non-exclusive and non-binding basis, in connection with potential inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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