(1) Where a chargeable asset which is disposed of was previously acquired by the disposer for a consideration wholly or substantially provided by a connected person within the meaning of Schedule 2 (otherwise than as a bona fide loan made in the course of carrying on business as a moneylender), the asset shall be deemed to have been disposed of by that person and not by the disposer:

Provided that, where the asset disposed of was acquired by the disposer from that person, that person shall, for the purpose of computing any gain accruing to or loss suffered by him by the operation of this subsection, be deemed to have acquired the asset at an acquisition price equal to the consideration which, by virtue of paragraph 9 and subparagraph 23 (1) of Schedule 2, he is deemed to have received when the asset was acquired by the disposer.

(2) The Director General, where he has reason to believe that any transaction has the direct or indirect effect of-

(a) altering the incidence of tax which is payable or suffered by or which would otherwise have been payable or suffered by any person;

(b) relieving any person from any liability which has arisen or which would otherwise have arisen to pay tax or to make a return;

(c) evading or avoiding any duty or liability which is imposed or would otherwise have been imposed on any person by this Act; or

(d) hindering or preventing the operation of this Act in any respect,