Explain in brief whether in the following independent cases, will GAAR provisions apply. (v) Foreign Portfolio Investors (FPIs) is based in a tax friendly jurisdiction for non-tax commercial reasons.

The case will be examined based on the twin tests of tax benefit and tainted element tests as specified in section 96 of the Act. If there are non-tax commercial reasons and tax benefit is not the main purpose, GAAR may not apply. Thus again, one needs to satisfy the commercial purpose test of any arrangement.