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TMI BlogInterpretations in this Chapter.X X X X Extracts X X X X X X X X Extracts X X X X ..... heme, agreement or understanding, whether enforceable or not, and includes any of the above involving the alienation of property; General anti-avoidance rule. (4) "asset" includes property, or right, of any kind; (5) "associated enterprise" in relation to another enterprise, means an enterprise— (a) which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or (b) in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise, and for the purposes of sub-clauses (a) and (b) above, two enterprises, shall be deemed to be associated enterprises at any time during the financial year, if they are associated with each other by virtue of— (i) one enterprise holding, directly or indirectly, shares carrying twenty-six per cent. or more of the voting power in the other enterprise; (ii) any person or enterprise holding, directly or indirectly, sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relative; (xii) one enterprise being controlled by a Hindu undivided family, and the other enterprise being also controlled by a member of such Hindu undivided family or by a relative of a member of such Hindu undivided family or jointly by such member and his relative; (xiii) one enterprise holding ten per cent., or more, interest in another enterprise being an unincorporated body; (xiv) any specific or distinct location of either of the enterprises as may be prescribed; or (xv) any other relationship of mutual interest, existing between the two enterprises, as may be prescribed; (6) "associated operation" in relation to any transfer means an operation of any kind effected by the transferor in relation to— (a) any asset transferred; (b) any asset representing, directly or indirectly, any asset so transferred; (c) the income accruing from any asset so transferred; or (d) any asset representing, directly or indirectly, the accumulation of income accruing from any asset so transferred; (7) "associated person" in relation to a person, means— (a) any relative of the person, if the person is an individual; (b) any director of the company or any relative of such director, if the person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more, of its units, divisions or subsidiaries, wherever located; and (b) the permanent establishment of the person referred to in sub-clause (a); (14) "funds" includes— (a) any cash; (b) cash equivalents; and (c) any right, or obligation, to receive, or pay, the cash or cash equivalent; (15) "impermissible avoidance arrangement" means a step in, or a part or whole of, an arrangement, whose main purpose is to obtain a tax benefit and it— (a) creates rights, or obligations, which would not normally be created between persons dealing at arm's length; (b) results, directly or indirectly, in the misuse, or abuse, of the provisions of this Code; (c) lacks commercial substance, in whole or in part; or (d) is entered into, or carried out, by means, or in a manner, which would not normally be employed for bona fide purposes; (16) "intangible property" includes know-how, patents, goodwill, copyrights, trade-marks, brand name, licences, franchises, any business or commercial rights, leasehold interest, exploration and exploitation rights, easement rights, air rights, water rights, or any other thing that derives its value from its intellectual content instead of its physical attributes; (17) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocation, source, ownership, or control, of the fund; (20) "party" means party to the arrangement; (21) "round trip financing" includes financing in which— (a) funds are transferred among the parties to the arrangement; and (b) the transfer of the funds would— (i) result, directly or indirectly, in a tax benefit but for the provisions of section 123; or (ii) significantly reduce, offset or eliminate any business risk incurred by any party to the arrangement; (22) "safe harbour", in relation to computation of arm's length price, means circumstances in which the income-tax authorities shall accept the transfer price declared by the assessee; (23) "similar security" means security which entitles its holder to the same rights against the same person as to capital and interest and the same remedies for the enforcement of those rights, irrespective of any difference in the— (a) total nominal amounts of the respective security; (b) form in which it is held; or (c) manner in which it can be transferred; (24) "substantial interest in the business" a person shall be deemed to have a substantial interest in the business, if— (a) in case where the business is carried on by a company, such perso ..... 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