Find out from the following, when shall an arrangement be deemed to be lacking in commercial substance so as to invoke provisions of General Anti Avoidance Rule (GAAR) under the Income Tax Act, 1961 (i) not a round trip

CS Executive · Tax Laws and Practice · PYQS · December 2018
Find out from the following, when shall an arrangement be deemed to be lacking in commercial substance so as to invoke provisions of General Anti Avoidance Rule (GAAR) under the Income Tax Act, 1961 (i) not a round trip financing (ii) an accommodation party (iii) elements having effect of offsetting or cancelling each other
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (ii)
(D) all the three above in (i), (ii) and (iii)

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic