Directions: The question consists of two statements, one labelled as Principle(s) and the other as F….

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Directions: The question consists of two statements, one labelled as Principle(s) and the other as Facts. You are to examine the principle(s) and apply it/them to the given facts carefully and select the best option.

Principle: Property inherited by a son from his father is not taxable.
Facts: Rohitesh died intestate in June 2015 and left a 10 acre farmhouse, which was inherited by his son Ankur. Ankur renovated the farmhouse and converted it into a club. The club was fully functional. Authorities, however, approached him to pay the tax.

Decide.

Options :-

1. He can only be charged building tax but not land tax owing to the above-stated principle.
2. No matter how he uses the property, he need not pay any tax for it is an inherited property.
3. He has changed the nature of the land, hence tax levied is justified.
4. Tax can only be levied on an economically viable venture and it is not clear if the club was economically viable.
5. ---------------------

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