With reference to the Income Tax Act, 1961, discuss whether the following acts can be considered as tax evasion, tax avoidance, tax planning, tax management or otherwise for the assessment year 2022-23 : (ii) Sunil is us

CS Professional · Advanced Tax Laws · PYQS · December 2022
With reference to the Income Tax Act, 1961, discuss whether the following acts can be considered as tax evasion, tax avoidance, tax planning, tax management or otherwise for the assessment year 2022-23 : (ii) Sunil is using a Car for his personal purposes, but charged car related expenses as business expenditure.

Answer & Explanation:

Treating a personal expenditure as business expenditure is an unlawful Act, which is disallowed under the Income tax Act, 1961. Mr. Sunil is resorting to unfair means to claim deduction by falsification of records. Therefore, it is Tax Evasion and illegal.

Topics: Income Tax Act

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