Case law - right to avoid tax (not evasion) by resorting to tax planning

[B Tayub]

Can anybody give any recent judgment of High Court/Supreme Court holding that tax planning within the provisions of tax laws (Income Tax) is legal and the assesses have right to avoid tax (not evasion) by resorting to tax planning so as to reduce their tax liability?

[Rama Krishana]

Tax planning and Tax evasion are two things which are being divided by a thin line. It depends upon each case. You may find a most recent case on this issue of the High court reported in 2009 TMI - 34200 - PUNJAB AND HARYANA HIGH COURT

AI Summary

Tax planning: lawful avoidance depends on facts; arrangements are assessed case by case for evasion risk. The line between tax planning and tax evasion is thin and fact sensitive: permissibility of arrangements to avoid tax under income tax law depends on the specific circumstances and factual matrix of each case, and recent judicial treatment illustrates this case by case assessment.