Interpretation

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....erprises, in uncontrolled, unrelated or independent conditions; (3)  "arrangement" means any step in, or a part or whole of, any transaction, operation, scheme, agreement or understanding, whether enforceable or not, and includes any of the foregoing involving the alienation of property; (4)  "asset" includes property, or right, of any kind; (5)  "associated enterprises" means two enterprises which are associated with each other at any time during the financial year, by virtue of -     (a) one enterprise holding, directly or indirectly, shares carrying ten per cent., or more, of the voting power in the other enterprise;     (b) any person or enterprise holding, directly or indirectly, shares carrying ten per cent., or more, of the voting power in each of such enterprises;     (c) a loan advanced by one enterprise to the other enterprise and the loan constitutes twenty-six per cent, or more, of the book value of the total assets of the other enterprise;     (d) one enterprise guaranting ten per cent, or more, of the total borrowings of the other enterprise;     (e) more ....

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....re existing between the two enterprises, any relationship of mutual interest, as may be prescribed; (6)  "associated operation" in relation to any transfer means an operation of any kind effected by the transferor in relation to-     (a) any asset transferred;     (b) any asset representing, directly or indirectly, any asset so transferred;     (c) the income accruing from any asset so transferred; or     (d) any asset representing, directly or indirectly, the accumulations of income accruing from any asset so transferred; (7)  "associated person", in relation to a person, means -     (a) any relative of the person, if the person is an individual;     (b) any director of the company or any relative of such director, if the person is a company;     (c) any participant in an unincorporated body or any relative of such participant, if the person is an unincorporated body;     (d) any member of the Hindu undivided family or any relative of such member, if the person is a Hindu undivided family;     (e) any indi....

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.... one, or more, of its units, divisions or subsidiaries, wherever located; and     (b) the permanent establishment of the person referred to in sub-clause (a); (13) "funds" includes,-     (a) any cash;     (b) cash equivalents; and     (c) any right, or obligation, to receive, or pay, the cash or cash equivalent; (14) "impermissible avoidance arrangement" means a step in, or a part or whole of, an arrangement, whose main purpose is to obtain a tax benefit and it,-     (a) creates rights, or obligations, which would not normally be created between persons dealing at arm's length;     (b) results, directly or indirectly,  in the misuse, or abuse, of the provisions of this Code;     (c) lacks commercial substance, in whole or in part; or     (d)    is entered into, or carried out, by means, or in a manner, which would not normally be employed for bonafide purposes; (15) "international transaction" means,-     (a) a transaction between two or more associated enterprises, either or all of whom is a n....

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....bsp; (A) whether or not the round tripped amounts can be traced to funds transferred to, or received by, any party in connection with the avoidance arrangement;           (B) the time, or sequence, in which round tripped amounts are transferred or received; or           (C) the means by, or manner in, which round tripped amounts are transferred or received.        (ii) an accommodating or tax indifferent party;        (iii) any element that have the effect of offsetting or cancelling each other;or        (iv) a transaction which is conducted through one or more persons and disguises the nature, location, source, ownership, or contrrol, of the fund; (18) "party" means party to the arrangement; (19) "round trip financing" includes financing in which, -     (a)    funds are transferred among the parties to the arrangement (hereinafter referred to as 'round tripped amounts'); and     (b) the transfer of the funds would,-   &n....