Rule 131 - Procedure before Approving Panel

128. (1) The provisions of Chapter XI shall not apply to— (a) an arrangement, where the aggregate tax benefit in the relevant tax year, to all the parties to the arrangement does not exceed ₹3 crore; (b) a Foreign Institutional Investor— (i) who is an assessee under the Act; (ii) who has not taken benefit of an agreement referred to in section 159; and (iii) who has invested in listed securities, or unlisted securities, with the prior permission of the competent authority, in accordance with the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, in relation to such investments; (c) a person, being a non-resident, in relation to investment made by him by way of offshore derivative instruments or otherwise, directly or indirectly, in a Foreign Institutional Investor; (d) any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any person from transfer of investments made before 1 April 2017 by such person. (2) Without prejudice to sub-rule (1)(d), Chapter XI shall apply to any arrangement, irrespective of the date on which it has been entered into, in respect of the tax benefit obtained from the arrangement on or after 1 April 2017. (3) For this rule— (a) “Foreign Institutional Investor” has the meaning assigned in section 210(6)(a); (b) “offshore derivative instrument” has the meaning assigned in the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995; (c) “Securities and Exchange Board of India” has the meaning assigned in section 2(1)(a) of the Securities and Exchange Board of India Act, 1992; and (d) “tax benefit”, as defined in section 184(11) and computed under Chapter XI, shall be with reference to— (i) section 184(11)(a) to (e), the amount of tax; and (ii) section 184(11)(f), the tax that would have been chargeable had the increase in loss referred to therein been the total income.