Section 183 is the substantive equivalent of 1961 s. 100 -- a SCOPE provision specifying that Chapter XI applies in addition to or in lieu of any other basis for determination of tax liability. The provision clarifies that GAAR is not…
183
ITA 2025 · Section 183
Section 183 — - APPLICATION OF CHAPTER XI
Section 183 is the substantive equivalent of 1961 s. 100 -- a SCOPE provision specifying that Chapter XI applies in addition to or in lieu of any other basis for determination of tax liability. The provision clarifies that GAAR is not limited by SAARs or DTAA -- it operates as supplementary anti-avoidance overlay.
Chapter XI provisions apply IN ADDITION TO or IN LIEU OF any other basis. So even if SAAR (e.g., s. 174 asset transfer / s. 175 bond washing / s. 177 thin cap) governs particular fact pattern, GAAR can ALSO apply. Where overlap exists, Chapter XI typically applies first; specific consequences (s. 181) accommodate SAAR / DTAA outcomes. Practitioner: GAAR is the broadest tool; even SAAR-defeated transactions may face GAAR challenge.
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