Determine with reasons whether the following are the acts of (i) tax planning (ii) tax evasion (iii) tax avoidance: (i) Sumit, a retail garments trader claims lavish travelling expenses incurred of ₹ 45,000 and personal

Tax Evasion: As per the provision of Income Tax Act, those expenses as directly or indirectly pertaining to the business of the assessee are the allowable expenses. Thus, claiming personal expenses with respect to travel and laptop repair expenses as business expenses will be a case of tax evasion due to the use of dishonest and unethical means having an element of deceit and thus have the possibility of penalties and prosecutions as per law.