(1) If it appears to the Deputy Commissioner of Taxes during the course of any proceedings that a taxpayer has taken tax benefits by abuse of a tax arrangement in any income year, the Deputy Commissioner of Taxes shall take action making necessary adjustment of tax benefits received through abuse following the procedure mentioned in this section.

(2) The adjustment referred to in sub-section (1) shall include the following matters, namely:-

(a) enhancement of income;

(b) amendment of tax liability;

(c) adjustment of tax refund;

(d) revision of allowances, concessions etc.;

(e) any other order which withdraw the tax benefit.

(3) Any adjustment under this section shall have effect for the purpose of carrying out all the purposes under this Act.