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TMI Blog2020 (4) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... , whose activities are purely non-binding investment advisory services. We do not find any merit in the appeal by Revenue. The directions, of the DRP in excluding Motilal from the list of comparables are upheld and the appeal of the Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer . The DRP after considering the documents furnished by the assessee concluded that Motilal Oswal Investment Advisory Pvt.Ltd, (in short 'Motilal') is engaged in the Merchant Banking activities and hence, not comparable. The DRP directed exclusion of 'Motital' from the list of comparables. However, the DRP retained Ladderup Corporate Advisory Pvt. Ltd ( in short 'Ladderup') as good comparable. 3. The assessee in its appeal has impugned inclusion of 'Ladderup' as comparable. On the other hand, the Revenue in its appeal has assailed the findings of DRP in excluding 'Motilal' from the list of comparables. 4. Shri Ajay R. Singh, appearing on behalf of the assessee submitted that assessee is engaged in the business of providing Non-b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference between Investment Advisory Services and Merchant Banking Services is that in the investment advisory services remuneration is by way of fixed nominal fee. In the case of merchant banking services the remuneration is commission based. 4.1 The ld. Authorized Representative for the assessee supporting the findings of DRP qua exclusion of 'Motilal' from the list of comparables submitted that Tribunal in the case of Carlyle India Advisors Pvt. Ltd. vs. DCIT in ITA No.7367/Mum/2012 for assessment year 2008-09 decided on 07/02/2014 has held that 'Motilal' is not good comparable with a company engaged in investment advisory services. The Tribunal thereafter, in the case of Carlyle India Advisors Pvt. Ltd. vs. ACIT in ITA No2410/Mum/2017 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices. 5. Per contra, Shri Azhar Zain, representing the Department submitted that 'Motilal' should be included in the list of comparables as the activities carried out by the said company are akin to the activities of the assessee. In respect of 'Ladderup', the ld.Departmental Representative submitted that no material has been placed on record by the assessee to show that the said company earned income during the relevant period from merchant banking activities. The ld.Departmental Representative prayed for modifying the directions of DRP to include 'Motilal' in the list of comparables. 6. We have heard the submissions made by rival sides and have perused the orders of authorities below. The only issue raised in the respective appeals by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that so far as the selection of final comparable namely Ladderup is concerned, this Tribunal in the case of Temasek Holding Advisors India P. Ltd. Vs. DCIT [87 Taxmann.com 168] for identical Assessment year observed that Ladderup was registered as Category-1 Merchant Banker with SEBI and was engaged in rendering merchant banking services w.e.f. 01/07/2010 which fact was duly substantiated by the website of the company as well as its Annual Reports and therefore, not functionally comparable with an entity which was engaged in the business of rendering non-binding investment advisory services. The ratio of this decision has subsequently been followed in recent decision of the Tribunal rendered in Wells Fargo Real Estate Advisors Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derup from the list of comparables, in the case of companies engaged in Non-binding investment advisory services, we direct the Assessing Officer /TPO to exclude the said company from the list of comparables being functionally different. The grounds of appeal by the assessee are thus, allowed. 9. In the result, assessee succeeds in its appeal. Motilal Oswal Investment Advisors Pvt.Ltd. 10. The contention of the assessee is that 'Motilal' is engaged in Merchant Banking Advisory Services, whereas, the assessee is engaged in providing nonbinding investment advisory services. In so far as nature of activities carried out by the assessee , the Revenue is not in dispute. The DRP has excluded Motilal from the list of comparables by placing rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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