Application of this Chapter The provisions of this Chapter shall apply in addition to, or in lieu of, any other basis for determination of tax liability. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | […]

Treatment of connected person and accommodating party For the purposes of this Chapter, in determining whether a tax benefit exists,—   (i) the parties who are connected persons in relation to each other may be treated as one and the same person;  (ii) any accommodating party may be disregarded; (iii) the accommodating party and any other party may

Consequences of impermissible avoidance arrangement (1) If an arrangement is declared to be an impermissible avoidance arrangement, then, the consequences, in relation to tax, of the arrangement, including denial of tax benefit or a benefit under a tax treaty, shall be determined, in such manner as is deemed appropriate, in the circumstances of the case,

Arrangement to lack commercial substance (1) An arrangement shall be deemed to lack commercial substance, if— (a) the substance or effect of the arrangement as a whole, is inconsistent with, or differs significantly from, the form of its individual steps or a part; or (b) it involves or includes—  (i) round trip financing; (ii) an accommodating

Impermissible avoidance arrangement 1) An impermissible avoidance arrangement means an arrangement, the main purpose of which is to obtain a tax benefit, and it— (a) creates rights, or obligations, which are not ordinarily created between persons dealing at arm’s length; (b) results, directly or indirectly, in the misuse, or abuse, of the provisions of this

Applicability of General Anti-Avoidance Rule (1) Notwithstanding anything contained in the Act, an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and the consequence in relation to tax arising therefrom may be determined subject to the provisions of this Chapter. (2) This Chapter shall apply in respect of

Limitation on interest deduction in certain cases (1) Notwithstanding anything contained in this Act, where an Indian company, or a permanent establishment of a foreign company in India, being the borrower, incurs any expenditure by way of interest or of similar nature exceeding one crore rupees which is deductible in computing income chargeable under the

Special measures in respect of transactions with persons located in notified jurisdictional area (1) The Central Government may, having regard to the lack of effective exchange of information with any country or territory outside India, specify by notification in the Official Gazette such country or territory as a notified jurisdictional area in relation to transactions

Avoidance of tax by certain transactions in securities  (1) Where the owner of any securities (in this sub-section and in sub-section (2) referred to as “the owner”) sells or transfers those securities, and buys back or reacquires the securities, then, if the result of the transaction is that any interest becoming payable in respect of

Avoidance of income-tax by transactions resulting in transfer of income to non-residents (1) Where there is a transfer of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, any income becomes payable to a non-resident, the following provisions shall apply— (a) where any person has, by means of any