Arrangement to lack commercial substance.

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...., source, ownership or control of funds which is the subject matter of such transaction; or (c) it involves the location of an asset or of a transaction or of the place of residence of any party which is without any substantial commercial purpose other than obtaining a tax benefit (but for the provisions of this Chapter) for a party; or (d) it does not have a significant effect upon the business risks or net cash flows of any party to the arrangement apart from any effect attributable to the tax benefit that would be obtained (but for the provisions of this Chapter). (2) For the purposes of sub-section (1), round trip financing includes any arrangement in which, through a series of transactions- (a) funds are t....

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....i) the fact that an exit route (including transfer of any activity or business or operations) is provided by the arrangement.]     *************** NOTES:- 1.  Omitted vide Section 29 of the Finance Act 1965 w.e.f. 01-04-1965 before it was read as, "Applicability of Act to super-tax 97. (1) All the provisions of this Act relating to the charge, assessment, collection and recovery of income-tax shall apply, so far as may be and save as otherwise provided, to the charge, assessment, collection and recovery of super-tax. (2) Save as expressly provided in any other section in this Chapter, the provisions of section 4, section 181 and sub-section (1) of section 1....

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....f transactions- (a) funds are transferred among the parties to the arrangement; and (b) such transactions do not have any substantial commercial purpose other than obtaining the tax benefit (but for the provisions of this Chapter), without having any regard to- (A) whether or not the funds involved in the round trip financing can be traced to any funds transferred to, or received by, any party in connection with the arrangement; (B) the time, or sequence, in which the funds involved in the round trip financing are transferred or received; or (C) the means by, or manner in, or mode through, which funds involved in the round trip financing are transferred or received. (3) For the ....