Determination of an impermissible avoidance arrangement and consequences thereof.
161. (1) The Commissioner shall, for the purposes of determining the consequences under section 112, serve on the assessee a notice requiring him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars-
(a) which may be required for the purposes of determining the consequences; or
(b) on which the assessee may rely in support of his claim that the provisions of section 112 are not applicable to his case.
(2) On the day specified in the notice issued under sub-section (1), or as soon afterwards as may be, the Commissioner shall, by an order in writing, determine the consequences, if any, under section 112 after,-
(a) hearing such evidence and after taking into account such particulars as the assessee may produce; and
(b) taking into account all relevant material which he has gathered.
(3) Upon the determining the consequences, if any, the Commissioner shall issue direction to the assessing officer to make such adjustment to the total income, or the tax liability, in the case of the assessee and any other party to the arrangement, that are necessary, appropriate and consistent.
(4) No order under sub-section (2) shall be issued after twelve months from the end of the month in which the notice under sub-section (1) is issued.
