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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 ..... n ble High Court of Delhi in view of its order dated 12.03.2018 in ITA No. 286/2018. The Pr. CIT2, vide an appeal against the order dated 19.09.2017 passed by the coordinate 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 coordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the year 31.03.2007 in the comparable. It was further stated that this company is a leading merchant banker and is engaged in managing the public issues. Therefore, it is functionally 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 comparab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransfer pricing officer s order. The assessee has raised the functional dissimilarity issue stating that the comparable company is engaged in the merchant banking business and has also acted 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Keynote corporate consultancy private limited is functionally different from the assessee for this year. Therefore, we direct the learned transfer pricing officer/assessing officer 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 ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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