Telangana High Court sets aside GAAR invocation, holds that tax benefit alone does not establish an impermissible avoidance arrangement
The Telangana High Court examined whether setting off of short-term capital losses - arising on account of transactions in listed shares around bonus issues - against long-term capital gains arising from a slump sale constituted an impermissible avoidance arrangement under the General Anti-Avoidance Rules (GAAR) under Chapter X-A of the Income-tax Act, 1961 (“the Act”).