India: General anti-avoidance rule may apply even if not within scope of specific anti-avoidance rule

High Court decision concerning application of general anti-avoidance rule within scope of specific anti-avoidance rule

High Court decision concerning general anti-avoidance rule

The Telangana High Court upheld application of the general anti-avoidance rule (GAAR) to a share sale transaction that a specific anti-avoidance rule (SAAR) (bonus stripping provision) was designed to address but that was not within the scope of the SAAR.

The court found that the subsequent enactment of the GAAR overrode the SAAR.

Read a June 2024 report prepared by the KPMG member firm in India


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