Explain in brief whether in the following independent cases, will GAAR provisions apply. (iv) BDX Ltd. has 2 manufacturing units, one which produces certain goods in a non SEZ area and one in a SEZ area. It diverts produ

This is a clear case of misrepresentation of facts by showing production of non SEZ units as within the SEZ unit, and hence falls in the bracket of tax evasion and not tax avoidance. Hence, GAAR may not be invoked in this case as GAAR intends to tackle only tax avoidance and not tax evasion. So normal provisions of income tax act like denying the deduction, levy of penalties etc. will apply.