General Anti-Avoidance Rule applicability clarified: scope, safeguards, grandfathering, treaty interplay and procedural checks for taxpayers. GAAR applies alongside SAAR and treaty anti abuse rules, guided by the main purpose test under section 96; treaty LOB can preclude GAAR where avoidance is addressed. Grandfathering protects pre 1 April 2017 investments in specified convertible instruments and related bonus/split shares, but excludes standalone leases and loans. Advance Rulings and court sanctioned arrangements preclude GAAR. Invocation requires Principal Commissioner/Commissioner vetting and an Approving Panel review; GAAR disregards covered arrangements, assesses Indian jurisdictional tax benefit per assessment year, does not mandate cross taxpayer corresponding adjustments, and offers no blanket penalty exemption.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
General Anti-Avoidance Rule applicability clarified: scope, safeguards, grandfathering, treaty interplay and procedural checks for taxpayers.
GAAR applies alongside SAAR and treaty anti abuse rules, guided by the main purpose test under section 96; treaty LOB can preclude GAAR where avoidance is addressed. Grandfathering protects pre 1 April 2017 investments in specified convertible instruments and related bonus/split shares, but excludes standalone leases and loans. Advance Rulings and court sanctioned arrangements preclude GAAR. Invocation requires Principal Commissioner/Commissioner vetting and an Approving Panel review; GAAR disregards covered arrangements, assesses Indian jurisdictional tax benefit per assessment year, does not mandate cross taxpayer corresponding adjustments, and offers no blanket penalty exemption.
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