98. Consequences of impermissible avoidance arrangement. - (7) If an arrangement is declared to be an impermissible avoidance arrangement, then, the consequences, in relation to tax, of the arrangement, including denial of tax benefit or a benefit under a tax treaty, shall be determined, in such manner as is deemed appropriate, in the circumstances of the case, including by way of but not limited to the following, namely:-
(a)disregarding, combining or recharacterising any step in, or a part or whole of, die impermissible avoidance arrangement;(b)treating the impermissible avoidance arrangement as if it had not been entered into or carried out;(c)disregarding any accommodating party or treating any accommodating party and any other party as one and the same person;(d)deeming persons who are connected persons in relation to each other to be one and the same person for the purposes of determining tax treatment of any amount;(e)reallocating amongst die parties to the arrangement-(i)any accrual, or receipt, of a capital nature or revenue nature; or(ii)any expenditure, deduction, relief or rebate;(f)treating-(i)the place of residence of any party to the arrangement; or(ii)the situs of an asset or of a transaction,at a place other than the place of residence, location of the asset or location of the transaction as provided under the arrangement; or(g)considering or looking through any arrangement by disregarding any corporate structure.(2)For the purposes of sub-section (1),-(i)any equity may be treated as debt or vice versa",(ii)any accrual, or receipt, of a capital nature may be treated as of revenue nature or vice versa; or(iii)any expenditure, deduction, relief or rebate may be recharacterised.
