2010 (4) TMI 293

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..... s 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 o .....

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..... are the same. The Revenue has claimed various questions of law. However, an all pervasive question which has been raised is whether the assessee-respondent has been consistently resorting to colourable device with the object of reducing the tax liability by transferring shares to another group of companies with a view to reduce the taxable income. The Tribunal has recorded categorical finding con .....

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..... r of Income Tax, Faridabad (ITA No.10 of 2004 decided on 31.3.2010) and it was concluded 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 .....

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