https://www.taxtmi.com/caselaws?id=233724 The Special Bench clarified that the benefit of the 5% tolerance margin under Section 92C(2) of the Income-tax Act, 1961 is applicable only when the variation between arm's length price and actual transaction price is within 5%. The retrospective amendment by Finance Act, 2012 restricted the application of the tolerance margin to cases meeting this criterion. The judgment favored the Revenue's interpretation, emphasizing that the tolerance margin cannot be claimed if the difference exceeds 5%. The case was referred back to the Division Bench for further proceedings in accordance with this ruling. en-us Tue, 30 Apr 2013 00:00:00 +0530 Tue, 29 Oct 2013 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=233724 The Special Bench clarified that the benefit of the 5% tolerance margin under Section 92C(2) of the Income-tax Act, 1961 is applicable only when the variation between arm's length price and actual transaction price is within 5%. The retrospective amendment by Finance Act, 2012 restricted the application of the tolerance margin to cases meeting this criterion. The judgment favored the Revenue's interpretation, emphasizing that the tolerance margin cannot be claimed if the difference exceeds 5%. The case was referred back to the Division Bench for further proceedings in accordance with this ruling. Case-Laws Income Tax Tue, 30 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=233724