INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Selection of comparables - Risk insulated company engaged in dissimilar functions

Assessee rendered non-binding investment advisory services to its AE abroad. TPO considered IDFC Investment Advisors (P) Ltd. as comparable to assessee's case. Tribunal reversed this. Held: Tribunal arrived at a finding that IDFC Investment Advisors (P) Ltd. was engaged in providing PMS and such services were fee based and the said company had earned revenue from different segments such as portfolio management fee, performance fee, advisory fee, etc. A company remunerated on cost plus basis, it was risk insulated and therefore, on application of FAR analysis, it could be compared with other assessee as there was any difference in its functions. Such findings were not shown to be ex facie perverse and unsustainable and exhibiting total non-application of mind and hence, no substantial question of law arose.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 92C

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