Arm's length price tolerance applies to trading and other cases; actual transaction price may be treated as arm's length for assessment. The Central Government notifies that where the variation between the arm's length price under section 92C and the actual transaction price does not exceed prescribed tolerance limits for assessment year 2023 2024, the actual price shall be deemed the arm's length price. Wholesale trading is defined by two conditions: purchase cost of finished goods being eighty per cent or more of total cost, and average monthly closing inventory being ten per cent or less of sales; transactions meeting the prescribed variation thresholds are treated as at arm's length.