TPG CAPITAL INDIA P.LTD, MUMBAI V. ASST CIT CIR 3(3), MUMBAI

ITA 880/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83970 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 16-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILENDRA P YADAV
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI . . , , , BEFORE SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIA L MEMBER . / ITA NO . 880 / MUM./ 2013 ( / ASSESSMENT YEAR : 20 08 09 ) TPG CAPITAL INDIA PVT. LTD. 1004, THE CAPITAL, PLOT NO.C 70 G BLOCK, BANDRA KURLA COMPLEX BANDRA (E), MUMBAI 400 051 .. / APPELLANT V/S A SSISTANT COMMISSIONER OF INCOME TAX CIRCLE 3 ( 3 ), MUMBAI .... / RESPONDENT . / PERMANENT ACCOUNT NUMBER AABCN6660K / ASSESSEE BY : SHRI PORUS KAKA A/W SHRI MANISH KANTH / REVENUE BY : SHRI AKHILENDRA P. YADAV / DATE OF HEARING 23 .09.2014 / DATE OF ORDER 29.10.2014 / ORDER , / PER AMIT SHUKLA , J.M. THE PRESENT APPEAL HAS BE EN PREFERRED BY THE ASSESSEE CHALLENGING THE IMPUGNED ORDER DATED 14 TH NOVEMBER 2012 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) X, MUMBAI, FOR THE QUANTUM OF ASSESSMENT PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) FOR TH E ASSESSMENT YEAR 20 08 09. TPG CAPITAL INDIA PVT. LTD. 2 2. THE SOLE DISPUTE ARISING OUT OF VARIOUS GROUNDS RAISED BY THE ASSESSEE IS TRANSFER PRICING ADJUSTMENT OF ` 2,39,28,647. THE ASSESSEE IS MAINLY AGGRIEVED BY THE INCLUSION OF TWO COMPARABLES BY THE TPO NAMELY , BRESCON CORPORATE AD VISORY LTD. AND SUMEDHA FISCAL SERVICES LTD., FOR BENCH MARKING THE ASSESSEES ARM'S LENGTH PRICE. 3. FACTS IN BRIEF : THE ASSESSEE IS MAINLY ENGAGED IN RENDERING NON BINDING INVESTMENT ADVISORY SUPPORT SERVICE TO ITS ASSOCIATE ENTERPRISE (A.E) I.E., TPG CAP ITAL SERVICES. THE SERVICES RENDERED ARE IN THE NATURE OF SUPPORT SERVICE TO ITS A.E. IN THE TRANSFER PRICING STUDY REPORT, THE INTERNATIONAL TRANSACTION WITH THE A.E. WAS REPORTED AS UNDER: SR. NO. NATURE OF TRANSACTION A.Y. 2008 09 METHOD USED 1. PRO VISION OF NON BINDING INVESTMENT ADVISORY SUPPORT SERVICES ` 17,84,61,149 TNMM TOTAL: ` 17,84,61,149 4. THE SERVICES RENDERED TO THE A.E. BY THE ASSESSEE WERE COMPENSATED WITH THE SERVICES FREE OF COST , PLUS 10% MARK UP. FOR THE PURPOSE OF BENCH MARKING ITS MARGIN, THE ASSESSEE ADOPTED TNMM AS THE MOST APPROPRIATE METHOD WITH PLI AS OP/TC COST. THE OP/TC OF THE ASSESSEES MARGIN WAS 9.4% WHICH WAS WORKED OUT AS UNDER: TPG CAPITAL INDIA PVT. LTD. 3 PARTICULARS A.Y. 2008 09 OPERATING REVENUE ` 17,89,82,136 OPENING COST ` 16,34,92 ,694 OPENING PROFIT ` 1,54,89,442 OP/TC (%) 9.47% 5. THE ASSESSEE HAD BENCH MARKED 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: SR. NO. NAME OF THE COMPANY OP/TC (%) A.Y. 2008 09 1. ICRA MANAGEMENT CONSULTING SERVICES LTD. 4.14 2. ICRA ONLINE LTD. 6.08 3. ICRA TECHNO ANALYTICS LTD. 5.41 4. IDC (I) LTD. 15.48 5. INFOR MED TECHNOLOGIES INDIA LTD. 3.82 6. FUTURE CAPITAL HOLDINGS LTD. 20.56 7. FUTURE CAPITAL INVESTMENT ADVISORS LTD. 21.58 8. KPIT COMMINS GLOBAL SOLUTIONS LTD. 7.03 6. THUS, IT WAS REPORTED THAT THE ASSESSEES MARGIN IS AT ARM'S LENGTH PRICE. THE TRANSFE R PRICING OFFICER FOUND THAT DURING THE COURSE OF SEARCH PROCESS AND QUALITATIVE ANALYSIS, THREE MORE COMPANIES WERE FOUND TO BE COMPARABLE , NAMELY ; (I) BRESCON CORPORATE ADVISORS LTD. ; TPG CAPITAL INDIA PVT. LTD. 4 (II) SUMEDHA FISCAL SERVICES LTD., AND (III) CRISIL LIMITED . THE TRANS FER PRICING OFFICER REMOVED ONE COMPARABLE VIZ. KPIT CUMMUN I S GLOBAL BUSINESS SOLUTION LTD. SELECTED BY THE ASSESSEE AS IT WAS A LOSS MAKING COMPANY DURING THE FINANCIAL YEAR 2005 06 AND 2007 08. ACCORDINGLY, THE TRANSFER PRICING OFFICER SELECTED 10 COMPA RABLES WITH AN ARITHMETIC MEAN OF 24.11% WHICH WERE AS UNDER: SR. NO. NAME OF THE COMPANY OP/TC (%) A.Y. 2008 09 1. ICRA MANAGEMENT CONSULTING SERVICES LTD. 4.18 2. ICRA ONLINE LTD. 6.08 3. ICRA TECHNO ANALYTICS LTD. 5.41 4. IDC (INDIA) LTD. 15.48 5. INFORMED TECHNOLOGIES INDIA LTD. 3.82 6. FUTURE CAPITAL HOLDINGS LTD. 20.56 7. FUTURE CAPITAL INVESTMENT ADVISORS LTD. 21.58 8. BRESCON CORPORATE ADVISORS LTD. 87.40 9. SUMEDHA FISCAL SERVICES LTD. 49.38 10. CRISIL LIMITED 27.20 ARITHMETIC MEAN 24.11 7. IN RESPONSE, TO THE SHOW CAUSE NOTICE THE ASSESSEE FILED ITS OBJECTION VIDE LETTER DATED 10 TH OCTOBER 2011, WHICH WERE AS UNDER: 1. THE ANALYSIS UNDERTAKEN BY THE ASSESSEE IS CONTEMPORANEOUS IN NATURE AS IT WAS CONDUCTED WITHIN DUE DATE. TPG CAPITAL INDIA PVT. LTD. 5 2. THE COMPANY IS ENTITLED TO ADJUSTMENTS FOR DIFFERENCE IN WORKING CAPITAL POSITION AND RISK PROFILE. 3. KPIT COMMUNIS GLOBAL BUSINESS SOLUTIONS LTD. SHOULD BE SELECTED AS IT IS FUNCTIONALLY COMPARABLE. 4. THE ADDITIONAL COMPARABLES SELECTED BY DEPARTMENT ARE NOT COMPARABLE WITH THE ASSESSEE. 5. EVEN IF THE ADJUSTMENT IS MADE BENEFIT OF 5% VARIATION ALLOWABLE SHOULD BE ALLOWED AS STANDARD DEDUCTION. 8. THE ASSESSING OFFICER REJECTED THE ASSESSEES CONTENTION , PARTICULARLY THE TWO COMPARABLES SELECTED BY IT NAM ELY , BRESCON CORPORATE ADVISORY LTD. AND SUMEDHA FISCAL SERVICES LTD., AS HE HELD THAT THEY WERE HAVING SIMILAR FUNCTIONS PERFORMED BY THE ASSESSEE. ACCORDINGLY, UPWARD ADJUSTMENT OF ` 2,39,28,647 WAS MADE IN THE FOLLOWING MANNER: SR. NO. PARTICULARS A.Y . 2007 08 A OPERATING REVENUE ` 17,89,82,136 B OPERATING COST ` 16,34,92,694 C OPERATING PROFIT ` 1,54,89,442 D ALP (%) 24.11 E ARMS LENGTH VALUE OF INTERNATIONAL TRANSACTION (B*124.11%) ` 20,29,10,783 F AMOUNT OF ADJUSTMENT (E A) ` 2,39,28,647 9. BE FORE THE LEARNED COMMISSIONER (APPEALS), THE ASSESSEE SUBMITTED THAT THE DETAILS OF VARIOUS FUNCTIONS PERFORMED BY IT AND SERVICES RENDERED TO ITS A.E. AND ALSO THE FUNCTION PERFORMED BY THE TPG CAPITAL INDIA PVT. LTD. 6 A.E. BASED ON THE FUNCTION AL PROFILE, THE ASSESSEE RAISED ITS OBJ ECTION AS TO WHY THESE TWO COMPARABLES I.E., BRESCON CORPORATE ADVISORY LTD. AND SUMEDHA FISCAL SERVICES LTD., CANNOT BE CONSIDERED AS COMPARABLE FOR THE PURPOSE OF BENCH MARKING. THESE OBJECTIONS HAVE BEEN INCORPORATED BY THE LEARNED COMMISSIONER (APPEALS ) FROM PAGE 6 TO 9 OF THE APPELLATE ORDER. THE LEARNED COMMISSIONER (APPEALS) REJECTED THE ASSESSEES CONTENTION AND HELD THAT THESE TWO COMPANIES HAVE RIGHTLY BEEN INCLUDED AS COMPARABLE BY THE TRANSFER PRICING OFFICER AND ALSO DISCUSSED IN DETAIL ABOUT T HE FUNCTIONAL PROFILE. ACCORDINGLY, THE TRANSFER PRICING ADJUSTMENT MADE BY THE TRANSFER PRICING OFFICER WAS CONFIRMED. 10. BEFORE US, THE LEARNED SENIOR C OUNSEL, SHRI PORUS KAKA, ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE SERVICES PROVIDED BY THE ASSESSEE TO ITS A.E. INCLUDES FOLLOWING FUNCTIONS. A. SEEKING, LOCATING AND ADVISING TPG CAPITAL L . P . OF THE POTENTIAL I NVESTMENT OPPORTUNITIES ; B. ASSISTING TPG CAP I TAL L . P. BY PROVIDING NECESSARY INFORMATION REQUIRED BY TPG CAPITAL L . P. FOR PROVIDING F I NANCIAL ANALY SIS , RESEARCH AND ADVICE REGARDING POTENTIAL INVESTMENT OPPORTUNIT I ES OF THE AES ; C. PROV I SION OF ADVICE TO TPG CAP I TAL L . P . WITH RESPECT TO THE OWNERSHIP , OPERATION AND MANAGEMENT OF THE I NVESTMENTS OWNED BY THE AES AND ON HOW BEST TO DEVELOP , RESTRUCTURE , EXPAND OR ASSIST COMPANIES OR BUSINESSES IN WH I CH THE AES HAVE INVESTED ; D. PROVISION OF CLERICAL AND ADM I N I STRATIVE SUPPORT AND GENERAL MANAGEMENT SERVICES TO TPG CAPITAL L . P . AS ARE NECESSARY AND REQUIRED ; E. PREPARATION OF FINANC I AL MODELS OF VARIOUS COM PANIES IN INDIA AS DIRECTED BY TPG CAPITAL L . P . ; TPG CAPITAL INDIA PVT. LTD. 7 F. GATHERING OF DATA RELATING TO INDIAN COMPANIES BASED ON MEETINGS AND I NTERACTION W I TH VAR I OUS STAKEHOLDERS INCLUDING MANAGEMENT , EMPLOYEES , CUSTOMERS , SUPPLIERS, CREDITORS, BANKERS ETC ; G. PROVISION OF INFO RMATION TO TPG CAPITAL L . P . OF RELEVANT DEVELOPMENTS AFFECTING ANY INVESTMENTS; H. PROVIDING NON - BINDING ADV I CE TO TPG CAP I TAL L . P . CONCERNING APPROPRIATE ACTIONS TO BE CONS I DERED IN ORDER TO CARRY INTO EFFECT THE PURCHASE AND SALE OF INVESTMENTS ; I. MONITOR ING AND ASSESSING THE PERFORMANCE OF PORTFOLIO COMPANIES AND ATTENDANT RISKS ; J. COLLATION OF RELEVANT EXTERNALLY SOURCED INFORMATION AS DIRECTED BY TPG CAPITAL L . P .; AND K. UNDERTAKING GENERAL RESEARCH RELATING TO THE ECONOMY , CAPITAL MARKETS ETC . AS DIRECT ED BY TPG CAPITAL L . P . 11. HE SUBMITTED THAT IN RESPECT OF THE SERVICES PROVIDED, THE ROLE OF THE ASSESSEE IS LIMITED TO PROVIDING INFORMATION AND INVESTMENT RECOMMENDATION TO TPG CAPITAL L.P. IT MERELY ACTS AS AN INDEPENDENT ADVISORY TO ITS A.E. WHICH IN TU RN REVIEWS AND ANALYSES THE INFORMATION / ADVISE OBTAINED FROM THE ASSESSEE. THE TPG CAPITAL L.P. HAS AN ABSOLUTELY DISCRETION TO REJECT THE ADVISE FROM THE ASSESSEE AS IT IS PURELY RECOMMENDATORY AND NOT BINDING IN NATURE. ALL THE DECISIONS RELATING TO SE LECTION, ACQUISITION AND DISPOSAL OF INVESTMENTS ARE EXCLUSIVELY MADE BY TPG CAPITAL L.P. HENCE, ITS FUNCTIONAL PROFILE IS ENTIRELY DIFFERENT FROM BRESCON CORPORATE ADVISORY LTD. AND SUMEDHA FISCAL SERVICES LTD. FROM THE ANNUAL REPORT OF SUMEDHA FISCAL SE RVICES LTD., HE POINTED OUT THAT TH ESE COMPAN IES ARE MAINLY IN INVESTMENT BANKING AND SECURITIES DEALING. IT IS ALSO INVOLVED IN PROJECT TPG CAPITAL INDIA PVT. LTD. 8 CONSULTANCY SERVICES. THE OVERALL PROFILE OF THE SAID COMPANY WAS ENUMERATED AS UNDER: 'DURING THE YEAR UNDER REVIEW Y OUR COMPANY ACHIEVED NEW HEIGHT IN ALL AREAS AND ACHIEVED HIGHEST EVER INCOME FROM BOTH SEGMENTS I . E . INVESTMENT BANKING AND SECURITIES DEALING. ' YOUR COMPANY CONTINUED ITS FOCUS ON FEE BASED ACTIVITIES (LOAN SYNDICATION AND PROJECT CONSULTANCY SERVICES) AND INCOME THERE FROM WAS TO RS . 447 . 41 LACS AS AGAINST RS . 261 . 82 LACS DURING . THE P REVIOUS YEAR (70.88% INCREASE) LNCOME FROM CAPITAL MARKET OPERATION WAS RS. 311 . 35 LACS AS AGAINST RS . 157.91 LACS DURING THE PREVIOUS YEAR. (97 . 16% INCREASE). I NVESTMENT B ANKING THE COMPANY CONTINUES TO CONCENTRATE ON ITS GREATEST STRENGTH AR I SING OUT OF LOAN SYNDICATION , EQUITY PLACEMENT AND PROJECT CONSULTANCY SERVICES . SECURITY DEALING THE COMPANY IS ENLARGING ITS BUSINESS IN THIS SEGMENT WITH OPERATIONS SPREAD OUT TO BRANCHES WITH EMPHASIS ON INSTITUTIONAL SALES . A DEDICATED RESEARCH DESK IS ALSO IN THE MAKING. YOUR COMPANY IS IN THE PROCESS OF COMMENCING ONLINE BROKING AND DEPOSITORY SERVICES. 12. IN SUPPORT OF HIS CONTENTION, HE STRONGLY RELIED UPON THE DECISION OF THE TRIBUNAL, MUMBAI BENCHES, IN CARLYLE INDIA ADVISORS PVT. LTD., WHEREIN THE TRIBUNAL HAS REJECTED SUMEDHA FISCAL SERVICES LTD. ON SIMILAR SET OF FACTS. THIS DECISION WAS FURTHER FOLLOWED IN CASE OF GENERAL ATLANTIC PVT. LTD. REGARDING BRESCON CORPORATE ADVISORY LTD., THE LEARNED SENIOR COUNSEL POINTED OUT THAT THE FUNCTIONAL PROFILE FROM THE ANNUAL REPORT WHICH WERE AS UNDER: THE COMPANY IS OPERATING IN THREE MAIN SERVICE SEGMENTS NAMELY , A) CAPITAL MARKET OPERATIONS COMPRISING OF STOCK BROKING , INVE STMENT, MUTUAL FUNDS & OTHER PRODUCTS DISTRIBUTION . B) CONSULTANCY COMPRISING OF LOAN SYNDICATION, MERCHANT BANKING , AND RESTRUCTURING & OTHER RELATED AD VISORY SERVICES . C) OTHERS COM PRISING OF OTHER SERVICES AREA. TPG CAPITAL INDIA PVT. LTD. 9 13. HE SUBMITTED THAT BASED ON THIS FUN CTIONAL PROFILE, THE SAID COMPANY CANNOT BE CONSIDERED AS COMPARABLE AND THIS FACT HAS BEEN ENDORSED BY THE TRIBUNAL IN TEMASEK HOLDINGS ADVISORIES INDIA PVT. LTD., ITA NO.4203/MUM./2012 AND ITA NO.6504/MUM./2012. THUS, HE SUBMITTED THAT THESE TWO COMPARAB LES SHOULD BE EXCLUDED FROM THE FINAL LIST OF COMPARABLES ON THE GROUND THAT THEY ARE FUNCTIONALLY INCOMPARABLE LOOKING TO THE SERVICES RENDERED BY THE ASSESSEE. 14. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, STRONGLY RELIED UPON THE OBSERVAT IONS AND FINDINGS GIVEN BY THE LEARNED COMMISSIONER (APPEALS). HE FURTHER SUBMITTED THAT THE BROAD CATE GOR Y OF FUNCTIONS HAS TO BE SEEN AND THE LEARNED COMMISSIONER (APPEALS) HAS GIVEN A VERY COGENT REASON FOR INCLUDING THE SAME AS COMPARABLE AFTER CONSIDE RING THE FUNCTIONAL PROFILE ANNUALLY. 15. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE RELEVANT FINDINGS OF THE LEARNED COMMISSIONER (APPEALS) AND THE MATERIAL AVAILABLE ON RECORD. THE ONLY DISPUTE BEFORE US IS THE INCLUSION OF TWO COMPARABLES NAMELY , BRE SCON CORPORATE ADVISORY LTD. AND SUMEDHA FISCAL SERVICES LTD. THE ASSESSEE HAS BEEN RENDERING NON BINDING INVESTMENT ADVISORY SUPPORT SERVICES TO ITS A.E. TPG CAPITAL L.P., THE FUNCTIONAL PROFILE WHICH HAS BEEN INCORPORATED IN THE FORGOING PARAGRAPH REFLEC TS THAT THE R O LE OF THE ASSESSEE IS LIMITED TO PROVIDING INFORMATION AND MAKING RECOMMENDATION FOR THE INVESTMENT IN INDIA. TPG CAPITAL INDIA PVT. LTD. 10 SUCH ADVISORY SERVICES ARE NOT BINDING ON ITS A.E. WHICH TAKE ITS OWN CALL AFTER ANALYSING THE DETAILS AND INFORMATION GIVEN BY THE ASSESSEE. FROM THE FUNCTIONAL PROFILE OF SUMEDHA FISCAL SERVICES LTD., IT IS SEEN THAT IT IS MAINLY ENGAGED IN INVESTMENT BANKING AND SECURITY DEALING. ITS MAIN INCOME IS FROM LOAN SYNDICATION AND PROJECT CONSULTING SERVICES AND ALSO CAPITAL MARKET OPERATI ON. ITS THREE MAIN SERVICE SEGMENT ARE (A) CAPITAL MARKET OPERATIONS COMPRISING OF STOCK BROKING INVESTMENT MUTUAL FUNDS AND OTHER PRODUCTS DISTRIBUTION; (B) CONSULTANCY WHICH COMPRISES OF LOAN SYNDICATION MERCHANT BANKING AND RE STRUCTURING; (C) OTHER REL ATED ADVISORY SERVICES. LOOKING TO SUCH BUSINESS PROFILE AND FUNCTIONS, IT CAN NOT BE HELD THAT SUMEDHA FISCAL SERVICES LTD. , IS AT AT ALL COMPARABLE HAVING REGARD TO THE SERVICES AND FUNCTION S PERFORMED BY THE ASSESSEE. THUS, IN OUR OPINION, SUMEDHA FISCAL SERVICES LTD. CANNOT BE INCLUDED AS COMPARABLE FOR THE PURPOSE OF BENCH MARKING THE MARGINS OF THE ASSESSEE. FURTHER, THE TRIBUNAL IN CARLYLE INDIA ADVISORS PVT. LTD. (SUPRA), ITA NO.7901/MUM./2011, HAS REJECTED THE SUMEDHA FISCAL SERVICES LTD., AS FUNCTI ONAL LY NOT COMPARABLE IN THE CASE WHERE THE ASSESSEE WAS RENDERING ADVISORY SUPPORT SERVICES. 16. NOW COMING TO THE BRESCON CORPORATE ADVISORY LTD., IT IS SEEN THAT THIS COMPANY IS A LEADING PLAYER IN DISTRESS AND SPECIAL SITUATION ADVISORY AND INVESTMENT SER VICES. IT ASSISTS THE COMPANIES IN A SPECIAL SITUATION LIKE RE CAPITALIZATION, MERGERS AND ACQUISITION, INFUSION OF TPG CAPITAL INDIA PVT. LTD. 11 PRIVATE EQUITY OR DIRECT INVESTMENT. ITS MAIN REVENUE IS FROM DEBT SYNDICATION AND FINANCIAL RE STRUCTURING ADVISORY SERVICES. THUS, SUCH A FUNCTIONAL PROFILE CANNOT BE HELD TO BE COMPARABLE AT ALL WITH THE SERVICES / FUNCTION S PERFORMED BY THE ASSESSEE WHICH ARE MAINLY ON ACCOUNT OF ADVISORY SUPPORT SERVICES OF PROVIDING INFORMATION AND INVESTMENT RECOMMENDATION. IN VIEW OF THESE FUNCTIONAL D IFFERENCE S , IT CANNOT BE HELD THAT THE SAID COMPANY IS COMPARABLE ON FAR ANALYSIS. ACCORDINGLY, BRESCON CORPORATE ADVISORY LTD., CANNOT BE HELD TO BE A COMPARABLE COMPANY FOR THE PURPOSE OF BENCH MARKING THE ASSESSEES MARGIN. THUS, IN OUR CONCLUSION, BOTH THE COMPARABLE COMPANIES AS TAKEN BY THE TRANSFER PRICING OFFICER SHOULD BE EXCLUDED FROM THE LIST OF FINANCIAL COMPARABLES . A FTER EXCLUDING THESE TWO COMPARABLES, THE ASSESSEES MARGIN SHOULD BE BENCH MARKED WITH THE OTHER LIST OF COMPARABLES AS TAKEN BY THE TRANSFER PRICING OFFICER I.E., OUT OF 10 COMPARABLES THESE TWO COMPARABLES ARE TO BE REMOVED AND BASED ON THE ARITHMETIC MEANS OF THE MARGIN OF THE FINAL SET OF EIGHT COMPARABLES, THE ASSESSEES MARGIN SHOULD BE BENCH MARKED ACCORDINGLY. THUS, GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED. 17. 1 7 . IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT O N 29 TH OCTOBER 2014 TPG CAPITAL INDIA PVT. LTD. 12 SD/ - . . N.K. BILLAIYA ACCOUNT ANT MEMBER SD/ - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 29 TH OCTOBER 2014 / COPY OF THE ORDER FORWARDED TO : (1) / THE ASSESSEE ; (2) / THE REVENUE; (3) ( ) / TH E CIT(A ) ; (4) / THE CIT, MUMBAI CITY CONCERNED ; (5) , , / THE DR, ITAT, MUMBAI ; (6) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI