Comparison of JAAD and GAAR

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..... e tax avoidance. It is a legislative measure to curb tax avoidance, Meaning JAAR is the judicial interpretation to deal with the situation of tax avoidance The Courts may take either a literal, i.e., strict view or purposive view towards statutory interpretation. GAAR standardized the approach to deal with s .....

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..... 3-SC-2012-O] case in 2012 , the Supreme Court held that the Income-Tax Department could always apply the substance over form principle or pierce the corporate veil if they establish that a transaction is a sham or tax avoidant GAAR is an extended and codified version of JAAR as spelt out by Apex Court in various decisions starting with Mc Dowell to Vodafone. .....

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..... lace of residence of any party as one of the elements to treat any tax planning as tax avoidance. Threshold Limit No threshold limits for applicability of JAAR as essentially, JAAR revolves around the following two guiding principles- a) Business purpose rule (motive test) b) Substance over form rule (artificiality test) .....

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