TPG CAPITAL INDIA (P) LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
Tpg Capital India (P) Ltd.
ASSISTANT COMMISSIONER OF INCOME TAX
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Amit Shukla, Member (J) -
(1.) THE present appeal has been preferred by the assessee challenging the impugned order dt. 14th Nov., 2012, passed by the learned CIT(A) -X, Mumbai, for the quantum of assessment passed under s. 143(3) of the IT Act, 1961 (for short "the Act") for the asst. yr. 2008 -09. The sole dispute arising out of various grounds raised by the assessee is transfer pricing adjustment of Rs. 2,39,28,647. The assessee is mainly aggrieved by the inclusion of two comparables by the TPO namely, Brescon Corporate Advisory Ltd. and Sumedha Fiscal Services Ltd., for benchmarking the assessee's ALP.
(2.) FACTS in brief : The assessee is mainly engaged in rendering non -binding investment advisory support service to its AE i.e., TPG Capital Services. The services rendered are in the nature of support service to its AE. In the transfer pricing study report, the international transaction with the AE was reported as under :
The services rendered to the AE by the assessee were compensated with the services free of cost, plus 10 per cent mark -up. For the purpose of benchmarking its margin, the assessee adopted TNMM as the most appropriate method with PLI as OP/TC cost. The OP/TC of the assessee's margin was 9.4 per cent which was worked out as under :
(3.) THE assessee had benchmarked its margin with six comparables and later on during the course of transfer pricing assessment proceedings, additional two companies were identified. The arithmetic means of updated set of eight comparable companies were as under :
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