https://www.taxtmi.com/highlights?id=103280 Rule 10B(3) permits reasonably accurate comparability adjustments under TNMM to neutralise material differences affecting profitability; it does not require mathematical precision or publicly available identical capacity-utilisation data for comparables. Extraordinary COVID-19-related underutilisation of a captive service provider's manpower and infrastructure can create abnormal idle costs because fixed employee and infrastructure costs are spread over reduced activity. Where the taxpayer substantiates those costs and their computation, and they are not shown to be non-genuine, non-business-related or incorrect, the costs should be neutralised in determining the arm's length margin. The resulting adjusted margin may establish that the international transaction is at arm's length. en-us Tue, 01 Sep 2026 08:26:22 +0530 Tue, 01 Sep 2026 08:26:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=103280 Rule 10B(3) permits reasonably accurate comparability adjustments under TNMM to neutralise material differences affecting profitability; it does not require mathematical precision or publicly available identical capacity-utilisation data for comparables. Extraordinary COVID-19-related underutilisation of a captive service provider's manpower and infrastructure can create abnormal idle costs because fixed employee and infrastructure costs are spread over reduced activity. Where the taxpayer substantiates those costs and their computation, and they are not shown to be non-genuine, non-business-related or incorrect, the costs should be neutralised in determining the arm's length margin. The resulting adjusted margin may establish that the international transaction is at arm's length. Highlights Income Tax Tue, 01 Sep 2026 08:26:22 +0530 https://www.taxtmi.com/highlights?id=103280