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ITA Nos. 8354 & 8033/Mum/2011 (Assessment Year: 2005-06)

6. The CIT(A) has erred in upholding/confirming the action of the TPO of selecting Assessee's transactions with the top ten Foreign Institutional Investors ('FIIs) as comparable to the controlled transactions for the purpose bose of benchmarking, without appreciating the difference in functions, assets and risks involved and the difference in factors influencing the brokerage rates of the controlled and uncontrolled transactions.

7. The CIT(A) has erred in confirming the action of the TPO in not allowing the adjustment in accordance with the provisions of Rule 10B of the Rules, on account of significant differences in the volume of the transactions entered by the Assessee with the associated enterprises vis-a-vis top ten FIIs.

8. The CIT(A) has erred in not allowing the adjustment in accordance with the provisions of Rule 10B of the Rules, on account of differential research cost incurred by the Assessee in transactions entered with associated enterprises and top ten FIIs client.

9. The CIT(A) has erred in withdrawing the adjustment allowed by the learned TPO in accordance with the provisions of Rule 10B of the Rules, for the marketing function performed by the Assessee in transactions entered with top ten FIIs, without assigning any basis for such withdrawal and without proving how the action of the AO in allowing such adjustment was incorrect or in the absence of any new fact or additional evidence supporting such withdrawal and without informing the appellant of the reasons for such withdrawal despite the Assessee's repeated requests in this regard.

2.2. The Assessee has also raised following Additional Grounds of appeal vide letter dated 22/08/2022 in ITA No. 8354/Mum/2011:

ITA Nos. 8354 & 8033/Mum/2011 (Assessment Year: 2005-06) "12. In the event a view is taken that it is not possible to quantify with complete accuracy the adjustment claimed by the Assessee in accordance with the provisions of Rule 10B of the Income Tax Rules, 1962 (on account of significant differences in the transactions entered by the Assessee with associated enterprises and top 10 FIIs), the most appropriate method ('MAM') should be regarded as Transactional Net Margin Method ('TNMM')."