Comparison of JAAD and GAAR

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....tion to deal with the situation of tax avoidance The Courts may take either a literal, i.e., strict view or purposive view towards statutory interpretation. GAAR standardized the approach to deal with situation of tax avoidance by codifying what constitutes tax avoidance. It is to codify the doctrine of "substance over form", where the real intention of the parties and effect of tr....

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....ended and codified version of JAAR as spelt out by Apex Court in various decisions starting with Mc Dowell to Vodafone. Scope The Courts on various occasions have held that that an attempt by resident of a third party to take advantage of existing provisions of double taxation avoidance agreement is not per se illegal unless such entity is per se sham or colorable device. Tax Department cannot....