State with reasons whether the following acts can be considered as Tax Planning or Tax Management or Tax Evasion? (v) X Ltd. engaged in manufacturing business has opened a 3 star hotel near its factory to claim deduction

Tax Planning, Tax Management, or Tax Evasion: (v) X Ltd. opening a 3-star hotel to claim deduction u/s 35AD: This act is a case of Tax Planning . Reason: Section 35AD of the Income-tax Act, 1961, provides for a 100% deduction of capital expenditure (other than land, goodwill, and financial instruments) incurred by certain specified businesses, including a new 3-star or above category hotel located in India. X Ltd. is legitimately diversifying its business into a sector that is eligible for a specific tax incentive (deduction under Section 35AD). This is a strategic business decision aimed at reducing tax liability by taking advantage of the provisions of the Income-tax Act, which is a form of tax planning.