Dismissing the appeal of the revenue the Court held that; while determining the Arm’s length price, Merger and Amalgamation had taken place in a company cannot be selected for comparable. Securities and stock broker cannot be compared with merchant banker. Interest earned on margin money deposited with AE for broking services for futures and options should be factored in to determine ALP. (AY. 2006 -07)
PCIT v. J.P.Morgan India (P) Ltd ( 2019) 261 Taxman 404/ 180 DTR 179 ( Bom) (HC)
S. 92C : Transfer pricing-Arm’s length price-Comparable–Merger and Amalgamation had taken place in a company–Cannot be selected for comparable–Securities and stock broker cannot be compared with merchant banker–Interest earned on margin money deposited with AE for broking services for futures and options should be factored in to determine ALP.