TMI Blog2009 (7) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... esorting 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] - 227 of 2009 - - - Dated:- 9-7-2009 - ADARSH KUMAR GOEL and MRS. JUSTICE DAYA CHAUDHARY, JJ. Mr. Rajesh Katoch, Advocate for the appellant. JUDGMENT ADARSH KUMAR GOEL, J. - The revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act) against the order of the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh dated 30.9.2008 passed in ITA No. 111/Chd/2008 for the assessment year 1996- 97, proposing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reliance by the learned Sr. DR on the decision of the Hon'ble Apex Court in the case of Mc Dowell co Ltd. Vs. CTO (154 ITR 148) (SC), wherein it was held that the tax planning may be legitimate provided it is within the frame work of law and colourable device cannot be part of tax planning, we are of the humble opinion, that the facts of the aforesaid judicial pronouncements may not help the Revenue because in the present appeal, no colourable device has been adopted by the assessee and even the learned Assessing Officer has not brought on record any evince even to suggest that the tax planning of the assessee is not within the permissible limit or any colourable device has been adopted by the assessee. In such a situation, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 ITR 11 and observations of Chinnappa Reddy, J. in Mc Dowel could not be treated as ratio of the judgment in view of opinions of majority to the effect:- "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." 5. The Hon'ble Supreme Court affirmed the view taken by the Madras High Court in MV Valliapappan Vs. ITO, (1988) 170 ITR 238 and Gujrat High Court in Berry Vs. CIT, (1996) 222 ITR 831. Reference was also made to judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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