Explanation:

GAAR is an Anti-avoidance rule framed by Department of Revenue under ministry of finance to identify and restrict arrangements and transactions that are specifically incurred with a motive of tax evasion. The Vodafone case, the biggest sensation of Indian Taxation history is one of the main reasons for the framework of GAAR.The Shome Committee has recommended the postponement of the controversial tax provision by three years to 2016-17. In effect, GAAR would apply from assessment year 2017-18. GAAR was aimed at firms and investors routing money through tax havens.