Arrangement to lack commercial substance - (New) Section 180(1)(c) / (Old) Section 97(1)(c) ]

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....deemed to lack commercial substances in whole or in part. An arrangement shall be deemed to lack commercial substance, if- (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 [ Section 97(1)(c) ] Clause (c) of section 97(1) Deems an arrangement to lack commercial substance where it involves the location of an asset or of a transaction or of the place of residence of any party and such location is without any substantial commercial purpose. It means if a particular location is selected for an asset or transaction or residence, and s....

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....gains tax in its domestic law. (vi) A Ltd. is also designated as a "permitted transferee" of Y Ltd. "Permitted transferee" means that though shares are held by A Ltd, all rights of voting, management, right to sell etc., are vested in Y Ltd. (vii) As per the joint venture agreement, 49% of X Ltd's equity is allotted to A Ltd. and 51% is allotted to Z Ltd.. (viii) Thereafter, the shares of X Ltd. held by A Ltd. are sold to C Ltd., a company connected to the Z Ltd. group. As per the tax treaty with country F1, capital gains arising to A Ltd. are not taxable in India. Can GAAR be invoked to deny the treaty benefit ?  Interpretation - The arrangement of routing investment through country F1 results into a tax benef....