(1) In cases where, in the course of any proceedings, it appears to the Deputy Commissioner of Taxes that an assessee has taken tax advantage by abusing a tax arrangement in any income year, the Deputy Commissioner of Taxes may make the necessary adjustments following the procedure mentioned in this section in pursuance of taking actions against such tax advantage received through abuse.

(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 refunds;

(d) amendment of allowances, rebate etc.;

(e) any other order withdrawing the tax benefit.

(3) Any adjustment under this section shall have effect for all purposes under this Act.