Special provisions for certain companies [Omitted by the Finance Act, 1987, w.e.f. 1-4-1988.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | […]

Income-tax on undistributed income of certain companies [Chapter XI omitted by the Finance Act, 1987, w.e.f. 1-4-1988. While sections 95 to 103 were omitted by the Finance Act, 1965, w.e.f. 1-4-1965, sections 104 to 109 were omitted by the Finance Act, 1987, w.e.f. 1-4-1988.] Practice area’s of B K Goyal & Co LLP Income Tax

Definitions In this Chapter, unless the context otherwise requires,— (1) “arrangement” means any step in, or a part or whole of, any transaction, operation, scheme, agreement or understanding, whether enforceable or not, and includes the alienation of any property in such transaction, operation, scheme, agreement or understanding; (2) “asset” includes property, or right, of any

Framing of guidelines The provisions of this Chapter shall be applied in accordance with such guidelines and subject to such conditions, as may be prescribed.55 Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI

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