Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (4) TMI 293 - HC - Income TaxTax evasion versus tax planning use of colorable devise to reduce tax transfer of shares to sister concern Held that: - once the transaction has been found to be genuine by the Tribunal then it cannot be dubbed as colourable device. It was further held that if the transaction was otherwise valid in law and a part of tax planning then merely because it has resulted in reduction of tax it cannot be ignored on the ground that the underlying motive of entering into such a transaction by the assessee was to reduce its tax liability to the State. The evasion of tax is substantially different than the planning concerning tax. - The Assessing Officer did not dispute the amount of consideration of sale received by the assessee-respondent from the buyer. Therefore, it has been concluded that there was no reason to accept that the shares were sold only for the purpose of reducing the tax liability.
|