80A.    Impermissible tax avoidance arrangements

 

An avoidance arrangement is an impermissible avoidance arrangement if its sole or main purpose was to obtain a tax benefit and –

 

(a)     in the context of business –

 

(i)      it was entered into or carried out by means or in a manner which would not normally be employed for bona fide business purposes, other than obtaining a tax benefit; or

 

(ii)     it lacks commercial substance, in whole or in part, taking into account the provisions of section 80C;

 

(b)     in a context other than business, it was entered into or carried out by means or in a manner which would not normally be employed for a bona fide purpose, other than obtaining a tax benefit; or

 

(c)      in any context –

 

(i)      it has created rights or obligations that would not normally be created between persons dealing at arm’s length; or

 

(ii)     it would result directly or indirectly in the misuse or abuse of the provisions of this Act (including the provisions of this Part).