9911796707
TMI Blog2018 (8) TMI 1950X X X X Extracts X X X X X X X X Extracts X X X X ..... overing international and domestic market, mergers and acquisitions, advisory and re structuring advisory and implementation - also offers services like private wealth management, asset management and commodities. From the documentary evidences produced by the assessee, he found that though the income stream in the audited account is shown to be from advisory services, however, the nature of the services is entirely different. Further, in response to a letter from the assessee the Chief Executive Officer of Motilal Oswal has stated that the company is in merchant banking and investment banking and is not engaged in providing investment research and advisory services. From the audited financials, the segmental details are not forthcoming. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. selected by the Transfer Pricing Officer as a comparable. 3. Brief facts are, the assessee is an Indian Company. As stated by the Assessing Officer, assessee is engaged in the business of financial advisory services and in the relevant previous year, it has entered into international transaction relating to provision of investment sub advisory services to its overseas Associated Enterprise (AE). For the assessment year under dispute, the assessee filed its return of income on 28th November 2011 declaring total income of ₹ 1,34,43,182. During the assessment proceedings, the Assessing Officer on examining the transfer pricing study report submitted by the assessee found that the assessee has earned a mark up of 20.38% on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital Investment Advisors Ltd. finding them to be functionally different from the assessee. Proceeding further, the Assessing Officer selected Motilal Oswal Advisory Pvt. Ltd. as a comparable in addition to IIML Asset Advisors Ltd. and Future Capital Holdings Ltd. selected by the assessee. Since, the arithmetic mean of the three comparables selected by the Assessing Officer worked out to 38.38%, the arm's length price of the transaction with the A.E. was determined @ ₹ 8,54,43,244, as against the price charged by the assessee at ₹ 7,43,28,625. The resultant difference of ₹ 1,11,14,619, was treated as the transfer pricing adjustment and added to the income of the assessee. Being aggrieved of such addition made by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. Though, the Assessing Officer selected Motilal Oswal Investment Advisors Pvt. Ltd., stating that it is functionally similar to the assessee, however, he himself has observed that this company is engaged in various activities including merchant banking / investment banking also. Notably, in course of hearing of appeal, the learned Commissioner (Appeals) has examined in detail the functionality of this company by analysing the documentary evidences available on record. On verifying the material on record, he has found that the company is into diversified activities including merchant banking / investment banking concerning private placement of equity, debt and convertible instrument covering international and domestic market, mergers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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