Decision on appropriateness of the comparables on the basis of FAR analysis

The India Income Tax Appellate Tribunal (ITAT) delivered its decision on 4 April 2012 in the case of Carlyle India Advisors Private Limited v. ACIT (ITA No. 7901/Mum/2011) that the provision of investment advisory services and investment banking services are not functionally comparable. Further, it also held that the tax authorities must provide adequate reasons in order to reject the comparables adopted by the Taxpayer (i.e. Carlyle India Advisors Private Limited) while arriving…