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2009 (7) TMI 23 - HC - Income TaxTax Planning Versus Tax Avoidance - Agreement to reduce tax liability artificially – ITAT held that , no colourable device has been adopted by the assessee, even when the intention of the assessee behind drafting the agreements between the assessee and the financial institution was to reduce the tax liability artificially of both the parties - “Tax Planning may be legitimate provided it is within the framework of law. Colourable devices cannot be part of tax planning and it is wrong to encourage or entertain the belief that it is honourable to avoid the payment of tax by resorting to dubious methods. It is the obligation of every citizen to pay the taxes honestly without resorting to subterfuges.” – Decision of ITAT uphold by following the decision of Supreme Court in the matter of CIT Vs. A. Raman & Co [2008 -TMI - 5051 - SUPREME Court]
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