General Anti Avoidance Rule (GAAR) are applicable when an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement. Explain briefly in the light of provisions of the Income Tax

As per section 95 of the Income Tax Act, 1961, an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement in relation to determination of tax arising therefrom. As per section 96 of the Income Tax Act, 1961, an impermissible avoidance arrangement means an arrangement, the main purpose of which is to obtain a tax benefit, and it: creates rights, or obligations, which are not ordinarily created between persons dealing at arm's length. results, directly or indirectly, in the misuse, or abuse, of the provisions of this Act. lacks commercial substance or is deemed to lack commercial substance under section 97 in whole or in part; or is entered into, or carried out, by means, or in a manner, which are not ordinarily employed for bona-fide purposes.