Explanation:

The introduction of General Anti-Avoidance Rules (GAAR) is a watershed event in the evolution of India’s tax policy and legislation. GAAR is an anti-tax avoidance law under Chapter X-A of the Income Tax Act, 1961 of India. It is framed by the Department of Revenue under the Ministry of Finance. GAAR has been made effective from 1 April 2017. Hence option b is the correct answer and option c is not the correct statement.
• GAAR applies to any arrangement that is considered an Impermissible Avoidance Arrangement (IAA). Furthermore, under its provisions, certain transactions are deemed to lack commercial substance. GAAR is not merely restricted to cross-border transactions, but also applies to domestic arrangements. Once the Revenue authorities decide to treat an arrangement as an IAA, the onus to prove otherwise is on taxpayers. Consequently, they are required to substantiate the commercial reasons for such
arrangements and that availing tax benefit was not the main purpose for these transactions. Hence option a is not the correct statement.
• Under the Income Tax act, a taxpayer has the right to appeal to the Income Tax Appellate Tribunal (ITAT) against an order passed by the Revenue authorities along with the direction of the Approving Panel. (A subsequent appeal may be filed before a High Court and the Supreme Court.). Hence option d is not the correct statement.