Section 240 - Avoidance of Tax Through Transactions with Non-resident
Where any business is carried on between a resident and a non-resident and it appears to the Deputy Commissioner of Taxes that due to close relationship between them business activities is so arranged that in the course of business the resident either earn no profit or earn less than the expected normal profit, in this context the Deputy Commissioner of Taxes shall determine the amount of income which may reasonably be consider to have accrued to the resident from such business and include such income in the total income of the resident.
Note: This is unofficial English translation. In the event of a conflict between the information on this website and the original Government publications or notifications of laws, rules, regulations, and SROs, the Government publications or notifications shall prevail. Moreover, as per Section 345(2) of the Income Tax Act 2023, if there is a conflict between the English and Bengali text, the Bengali text shall prevail.