What are the penalties for abusive tax avoidance transactions?

Section 271AAB of the Income Tax Act imposes a penalty for engaging in impermissible avoidance arrangements or prescribed impermissible avoidance transactions. The penalty can extend up to 100% of the tax benefit availed or sought to be availed through such transactions. Supporting Case Law: Vodafone India Services Pvt. Ltd. v. ACIT [2020] 114 taxmann.com 294 (Delhi) – Delhi High Court – 2020 – https://www.taxmann.com/Vodafone India Services Pvt. Ltd. v. ACIT [2020] 114 taxmann.com 294 (Delhi) – The court clarified the scope and applicability of section 271AAB penalties.

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