BareLaws
SECTION

Section 96 — Impermissible avoidance arrangement

From: The Income-tax Act, 1961

96. Impermissible avoidance arrangement .

(1)An impermissible avoidance arrangement means an arrangement, the main purpose of which is to obtain a tax benefit, and it -
(a)creates rights, or obligations, which are not ordinarily created between persons dealing at arm’s length;
(b)results, directly or indirectly, in the misuse, or abuse, of the provisions of this Act;
(c)lacks commercial substance or is deemed to lack commercial substance under section 97 , in whole or in part; or