Income Tax Act · 2024 Revised Edition · Part · Ascertainment of Income
25. Collector may disregard certain transaction and dispositions
Official textFrom Attorney General's Chambers, unchanged
Where the Collector is satisfied that the purpose or effect of any arrangement is directly or indirectly —
Collector
“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 76, 79, 80 and 83, a Deputy Collector so appointed;
to alter the incidence of any tax which is payable by, or which would otherwise have been payable by, any person;
to relieve any person from any liability to pay tax or to make a return under this Act; or
to reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act,
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he may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the arrangement and make such adjustment as he considers appropriate, including the computation or re-computation of gains or profits, and the imposition of liability to tax, so as to nullify any tax advantage obtained or obtainable from or under that arrangement.
In subsection (1), “arrangement” includes any scheme, trust, grant, convenant, agreement, disposition transaction and all steps by which it is carried into effect.
arrangement
“arrangement” means an avoidance of double taxation convention or tax information exchange agreement having effect under section 41;
Nothing contained in this section shall prevent the decision of the Collector in the exercise of any discretion given to him by this section from being questioned in an appeal against an assessment in accordance with Part 12.
Terms defined in this Act
arrangement
Defined · s 86A“arrangement” means an avoidance of double taxation convention or tax information exchange agreement having effect under section 41;
Collector
Defined · s 2“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 76, 79, 80 and 83, a Deputy Collector so appointed;
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