Examine and explain by giving reasons in brief as to the correctness or otherwise of each of the following statements in the context of provisions contained under the Income Tax Act, 1961: (v) Tax Avoidance cannot be con
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2020
Examine and explain by giving reasons in brief as to the correctness or otherwise of each of the following statements in the context of provisions contained under the Income Tax Act, 1961: (v) Tax Avoidance cannot be considered at par as Tax Evasion since it is usually done by taking advantage of loop-hole without any infringement of taxation laws so that least taxes are attracted.
Answer & Explanation:
Correct: Tax avoidance cannot be same as Tax Evasion. Azadi Bachao Andolan, (2003), 263 ITR 706 (SC) Supreme court held that citizen is free to carry on his business within the four corners of the law and that mere tax planning, without any motive to evade taxes through colourable devices is not frowned upon.
Topics: Income Tax Act, 1961
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