TaxTMI 
TaxTMI 
Interpretations in this Chapter.
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....ns, enterprises or undertakings, other than associated enterprises, 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 above involving the alienation of property; General anti-avoidance rule. (4) "asset" includes property, or right, of any kind; (5) "associated enterprise" in relation to another enterprise, means an enterprise— (a) which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or (b) in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise, and for the purposes of sub-clauses (a) and (b) above, two enterprises, shall be deemed to be associated ....
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.... (ix) the goods or articles manufactured, or processed, by one enterprise, being sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating thereto are influenced by such other enterprise; (x) the services provided, directly or indirectly, by one enterprise to another enterprise or to persons specified by the other enterprise, and the amount payable and the other conditions relating thereto are influenced by such other enterprise; (xi) one enterprise being controlled by an individual, and the other enterprise being also controlled by such individual or his relative, or jointly by such individual and his relative; (xii) one enterprise being controlled by a Hindu undivided family, and the other enterprise being also controlled by a member of such Hindu undivided family or by a relative of a member of such Hindu undivided family or jointly by such member and his relative; (xiii) one enterprise holding ten per cent., or more, interest in another enterprise being an unincorporated bod....
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.... family, or any relative of such director, participant or member, has a substantial interest in the business of that other person; (8) "benefit" includes a payment of any kind; (9) "broken period income" shall be calculated as if the income from such securities had accrued from day to day and been apportioned accordingly for the broken period; (10) "bona fide purpose" shall not include any purpose which— (a) has created rights or obligations that would not normally be created between persons dealing at arm's length; or (b) would result, directly or indirectly, in the misuse, or abuse, of the provisions of this Code; (11) "capital sum" means— (a) any sum paid by way of a loan or repayment of a loan; or (b) any other sum paid otherwise than as income, being a sum which is not paid for full consideration in money or money's worth; (12) "connected persons" includes associated persons; (13) "enterprise" in relation to an international transaction includes— ....
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....sp; (v) a mutual agreement or arrangement between two or more associated enterprises for the allocation or apportionment of, or any contribution to, any cost or expense incurred, or to be incurred, in connection with a benefit, service or facility provided, or to be provided, to any one or more of the enterprises; (b) a transaction entered into by two or more persons, not being associated enterprises, if— (i) the transaction is of the nature referred to in sub-clause (a); (ii) there exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise or the terms of the relevant transaction are determined in substance between such other person and the associated enterprise; and (iii) either, or both, of the associated enterprises is a non-resident; (18) "interest" includes dividend; (19) "lacks commercial substance"-a step in, or a part or whole of, an arrangement shall be deemed to be lacking commercial substance, if— (a) it does not have a significant effect upon the business risks, or net cas....
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....pective of any difference in the— (a) total nominal amounts of the respective security; (b) form in which it is held; or (c) manner in which it can be transferred; (24) "substantial interest in the business" a person shall be deemed to have a substantial interest in the business, if— (a) in case where the business is carried on by a company, such person is, at any time during the financial year, the beneficial owner of equity shares carrying twenty per cent. or more, of the voting power; or (b) in any other case, such person is, at any time during the financial year, beneficially entitled to twenty per cent. or more, of the profits of such business. (25) "tax benefit" means— (a) a reduction, avoidance or deferral of tax or other amount payable under this Code; (b) an increase in a refund of tax or other amount under this Code; (c) a reduction, avoidance or deferral of tax or ot....