Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment already covered delay.

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....Performance guarantee and product warranty obligations were held to be intrinsically linked to the software licensing and maintenance transaction, because the assessee was contractually responsible for updates, upgrades, maintenance and related services; the Tribunal therefore deleted the transfer pricing adjustment, also noting consistency with the assessee's own earlier year. Interest on overdue receivables was likewise deleted because the assessee had already applied TNMM with a working capital adjustment, the delay in collection was factored into the comparables analysis, and a further notional interest imputation would amount to duplication. The Tribunal found no material showing a disguised loan arrangement and accepted the explanation for delayed realisation.....