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The assessee is a resident-company and part of Clearwater Capital Partners (CCP Group), which is an investment firm founded in the year 2001. The assessee is a subsidiary of CCP Cyprus and is basically engaged in providing investment sub advisory services to its AE CCP, Singapore. During the year under consideration the assessee provided non–binding investment advisory services to its AE and received an amount. In the transfer pricing study report, the assessee benchmarked the aforesaid transaction with the AE by adopting transactional net margin method (TNMM) as the most appropriate method. Due to the difference in operating income, an upward adjustment was made to the ALP of international transaction with the AE. The adjustment proposed by the TPO was added to the income of the assessee while framing the assessment order. Assessee filed appeal before the first appellate authority. CIT(A), however, upheld the adjustment made by the TPO.
Held that this company cannot be treated as a comparable to investment advisory service provider. Tribunal directed the AO to exclude this company. That the assessee's margin would be within the ±5 per cent range of the raised of the comparable requiring no further adjustment. Appeal was partly allowed.

Shanti Prime Publication Pvt. Ltd.

Sec. 92 of Income-tax Act, 1961— Transfer pricing— The assessee is a resident-company and part of Clearwater Capital Partners (CCP Group), which is an investment firm founded in the year 2001. The assessee is a subsidiary of CCP Cyprus and is basically engaged in providing investment sub advisory services to its AE CCP, Singapore. During the year under consideration the assessee provided non–binding investment advisory services to its AE and received an amount. In the transfer pricing study report, the assessee benchmarked the aforesaid transaction with the AE by adopting transactional net margin method (TNMM) as the most appropriate method. Due to the difference in operating income, an upward adjustment  was made to the ALP of international transaction with the AE. The adjustment proposed by the TPO was added to the income of the assessee while framing the assessment order. Assessee filed appeal before the first appellate authority.  CIT(A), however, upheld the adjustment made by the TPO.
 Held that this company cannot be treated as a comparable to investment advisory service provider. Tribunal directed the AO to exclude this company. That the assessee's margin would be within the ±5 per cent range of the raised of the comparable requiring no further adjustment. Appeal was partly allowed. --- CLEARWATER CAPITAL PARTNERS INDIA (P) LTD. vs. Asstt. CIT. [2020] 23 ITCD Online 138 (MUM)