https://www.taxtmi.com/caselaws?id=243434 The article addresses entitlement to the proviso tolerance margin in transfer pricing, holding that the 5% safe-harbour applies only when variation between actual price and ALP falls within that margin; if variation exceeds it, no partial benefit is allowed and ALP under Section 92C(1) stands as computed. It rejects unsupported comparables and unexplained working-capital adjustments, requiring demonstrable reasons and empirical data for negative working capital or import-content adjustments. It confirms income accrues only on raising invoices, deleting an addition where legal claim arose later. It remits the question of TDS applicability on software purchases for fresh adjudication to determine right-to-use versus shrink-wrapped treatment. en-us Wed, 14 Aug 2013 00:00:00 +0530 Mon, 02 Feb 2026 12:47:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243434 The article addresses entitlement to the proviso tolerance margin in transfer pricing, holding that the 5% safe-harbour applies only when variation between actual price and ALP falls within that margin; if variation exceeds it, no partial benefit is allowed and ALP under Section 92C(1) stands as computed. It rejects unsupported comparables and unexplained working-capital adjustments, requiring demonstrable reasons and empirical data for negative working capital or import-content adjustments. It confirms income accrues only on raising invoices, deleting an addition where legal claim arose later. It remits the question of TDS applicability on software purchases for fresh adjudication to determine right-to-use versus shrink-wrapped treatment. Case-Laws Income Tax Wed, 14 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243434