ITAT MUMBAI BENCH ‘K’
Sandstone Capital Advisors (P.) Ltd.
versus
Assistant Commissioner of Income-tax
IT APPEAL NO. 6315 (MUM.) OF 2012
[ASSESSMENT YEAR 2008-09]
FEBRUARY 6, 2013
ORDER
Vijay Pal Rao, Judicial Member
This appeal by the assessee is directed against the assessment order dated 28.9.2012 passed u/s 143(3) r.w.s 144C(13) in pursuant to the directions of the DRP u/s 144C(5) of the I T Act for the AY 2008-09.
2. The only ground raised by the assessee in this appeal is as under:
“On the facts and circumstances of the case and in law, the Assessing Officer erred in making an adjustment of Rs. 15,16,87,983/- to the international transaction of providing investment advisory services.”
3. The assessee is a 100% subsidiary of Sandstone Capital LLC., a Delaware limited Liability Company having registered office at Boston, USA. The assessee company was incorporated in financial year 2004-05 and is engaged in carrying out business in providing financial services. As per the investment advisory agreement, the assessee was appointed as an investment advisor by Sandstone Capital LLC to provide investment advisory services in connection with investments in Indian securities. The services include analyzing, investigating and identifying opportunities in India and providing recommendations on such investment opportunities in India. During the financial year under consideration, the assessee has transactions with M/s Sandstone Capital LLC., which was subsequently become the holding company of the assessee and therefore, as an Associated Enterprises (AE) of the assessee. The details of the transactions are as under:
