- (1.) Leave granted.
(2.) In these civil appeals we are concerned with the articles in Double Tax Avoidance Agreement ("DTAA") between India and United States which have implication on transfer pricing legislation. The said Treaty either advocates application of arm's length principle or provides a mechanism for avoiding double taxation on income.
(3.) Morgan Stanley Group (MS Group) is one of the world's largest diversifying financial services companies. It is a world wide leader in investment banking and it is ranked amongst the top institutions in merger and acquisitions, underwriting of equity and equity and related transactions. It has a major presence in major securities market, with traders in numerous countries around the world offering a unique distribution of products. It has three main lines of business, namely securities investment management and investment banking and credit services. Morgan Stanley and Company (for short, 'MSCo') is an investment bank engaged in the business of providing financial advisory services, corporate lending and securities underwriting. One of the group companies of Morgan Stanley, Morgan Stanley Advantages Services Pvt. Ltd. (for short, 'MSAS') entered into an agreement for providing certain support services to MSCo. MSCo outsourced some of its activities to MSAS. The said MSAS was set up to support the main office functions in equity and fixed income research, account reconciliation and providing IT enabled services such as back office operation, data processing and support centre to MSCo.;