Examine and explain by giving reasons in brief as to the correctness or otherwise of each of the following statements in the context of provisions contained under the Income Tax Act, 1961: (iv) Impermissible avoidance ar
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
Examine and explain by giving reasons in brief as to the correctness or otherwise of each of the following statements in the context of provisions contained under the Income Tax Act, 1961: (iv) Impermissible avoidance arrangement results directly or indirectly in the misuse, or abuse of provisions of I.T. Act and be subject to applicability of GAAR.
Answer & Explanation:
Correct: As per section 96 of the Income Tax Act, 1961, any arrangement which directly or indirectly resulted in the misuse or abuse of the provisions of the Act is an impermissible avoidance arrangement where GAAR provision shall apply.
Topics: Income Tax Act, 1961
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