M.Com. (Semester II) (CBCS) Examination Nov/Dec-2018
TAXATION (Paper II)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
Taxation of a cooperative society is governed mostly as per section
80 P 80 C
80 G 89
The appeal under the Income Tax Act can be made to CIT (Appeals) against
order of
Income Tax Officer Additional CIT
CIT None of the above
Share of profit received from AOP to its member is
taxable exempt
partly taxable can't say
If net share of a member from AOP is loss, it against his individual
income.
can be set off can not be set off
is exempt none of the above
Rectification of mistake is made under income tax act as per the provision of
section
144 147
154 none of the above
As per Income Tax Act, company means and includes
Indian company
holding company
foreign company operating in India
all of these
Deduction under section 80 C is available for
companies cooperative societies
partnership firms individuals
Application of provisions of the Income tax act to minimize the tax liability is

tax evasion tax avoidance
tax planning all of the above
A search can be ordered by
Income tax officer Commissioner of income tax
Additional commissioner none of the above
10) Profit given by a Profit and Loss Account of the company is
net profit taxable profit
exempt none of the above
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11) An appeal against the order of Income Tax Officer is made to
Commissioner of Income Tax
Commissioner of Income Tax (Appeals)
Additional Commissioner of Income Tax
Joint Commissioner
12) Corporate tax rate prevailing in India is
30% 29%
33% none of the above
13) Provisions about various penalties are contained in section of
Income Tax Act.
234 271
194 none of the above
14) Wrong interpretation of tax provisions and their application is known as
tax planning tax evasion
tax management none of the above
Q.2 Answer the following. 14
Explain the provisions regarding appeal as per Income Tax Act.
What do you mean by 'tax evasion'? Explain with example.
Q.3 Answer the following. 14
Explain the features of taxation of cooperative societies.
Discuss the provisions about search and survey as per Income Tax Act.
Q.4 Attempt any one of the following: 14
Explain the provisions relating to taxation of companies.
What are the deductions specifically applicable for companies?
OR
What is 'association of persons'? Explain the provisions of taxation of such
AOPs.
Q.5 Attempt any one of the following. 14
Siddheshwar Packaging Ltd. has given the following information.
Particulars Rs. Particulars Rs.
Opening Stock 4,01,000 Sales 46,09,000
Purchase 22,18,500 Closing Stock 4,19,000
Salaries and wages 8,39,400 Dividend 5,000
General Expenses 4,09,500 Transfer fees 10,000
Donation 5,000
Office expenses 32,800
Audit fees 12,000
Depreciation 5,95,000
Legal charges 20,000
Income tax 80,000
Net Profit 4,29,800
50,43,000 50,43,000
Legal charges include Rs. 5,000 paid for personal hearing of director.
Depreciation as per IT rule is Rs. 5,16,500
You are required to compute the tax liability of Rex Ltd.
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OR
Following information is given by Samaj Swasthya Kendra, an AOP formed
voluntarily for promotion of health awareness among people for A.Y. 2016-17.
You are required to calculate the income of AOP as well as three members
viz. Ramesh, Suresh and Mitesh. Their share in contribution as well as
surplus is equal.
Contribution received from society as donation Rs. 79,000
Interest paid to members Rs. 3,500
Salary paid to members Rs. 12,500
Commission paid to members Rs. 5,100
Fees received from arranging a function Rs. 66,000
Interest on bank deposit received by AOP Rs. 2,300
Grant received from Zilla Parishad for camps Rs. 19,000
Other expenses incurred on the objectives of AOP Rs. 17,450
The AOP is taxed at the normal rate of tax
10) The surplus remaining after deducting expenses is distributed
equally among members.