M.Com. (Semester II) (CBCS) Examination Mar/Apr-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
The of income tax (appeals) is the first appellate authority.
Commissioner
Officers
Staff
Clerks
In the appeal proceedings the taxpayer or the Assessing officer can either appear personally or can appear through an
Agent
Officers
Authorized representative
All of these
As per section 271 where a person fails to file the statement of tax deducted collected at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then he shall be liable to pay penalty under section 271 H. Minimum penalty can be levied of Rs. 10,000 which can go up to Rs.
1,00,000
2,00,000
3,00,000
None of these
Foreign company is a company which is not a company.
Foreign
Domestic
International
None of these
Book profit means profit as shown by account.
Profit and Loss
Balance Sheet
Trading Account
Manufacturing Account
When two or more persons come together to protect their common interest or perform a joint business activity it is called as
AOP
Firm
Company
Charitable Institution
Where the payment of tax is avoided through illegal means or fraud is termed as
Tax Evasion
Tax Avoidance
None of these
All of these
Section 272BB provides for penalty for quoting incorrect Tax Deduction Account Number or Tax Collection Account Number (as the case may be). Penalty under section 272BB is Rs.
75,000
50,000
10,000
5,000
After the receipt of the commissioner of Income-tax (Appeals) will fix the date and place for hearing the appeal.
Form No 02
Form No. 03
Form No. 35
Form No. 53
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10) Section specifies the orders against which an appeal can be filed before the Commissioner of Income Tax (Appeals).
261
260A
253
246A
11) Where assessed income (i.e. total income as determined in the assessment) is more than Rs. 1,00,000 but less than Rs. 2,00,000 the fees for filing the appeal before the Commissioner of Income Tax (Appeals) are
Rs. 250
Rs. 500
Rs. 1,000
Rs. 10,000
12) If a taxpayer, in spite of the requirement of section 44AB, fails to get his accounts audited, penalty shall be one half percent of total sales or Rs. whichever is less.
1500000
150000
15000
None of these
13) Section provides that no person shall take or accept loan or deposit or specified sum exceeding Rs. 20,000 by any mode other than account payee cheque or account payee Demand Draft or use of electricity clearing system through a bank account.
269SS
268
280
280SS
14) As per section 271H, where a person fails to file the statement of tax deducted collected at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then he shall be liable to pay penalty under section
271K
271J
271G
271H
Q.2
Write short notes on the following.
14
Relaxation from penalty
Penalty for default in making payment of Self Assessment Tax
Q.3
Write short notes on the following.
14
Time-limit for presenting an appeal
Book profits of company
Q.4
Provisions under Income Tax Act 1961 for curbing Tax evasion.
14
OR
The following is the Profit Loss Account of DG ltd. For the year ended 31st March, 2017.
Particulars
Amount
Particulars
Amount
Cotton
1,14,18,000
Yarn account
1,08,11,000
Stores
18,36,000
Cotton Account
96,25,000
Mills Salaries Wages
38,32,000
Waste Account
1,21,000
General Expenses
29,000
Transfer Fees
8,000
Donations
10,000
Rent of Bungalows Chawls
58,000
Rent Insurance
40,000
Dividend from MFL
32,000
Brokerage
7,000
Office Expenses
2,41,000
Directors Fees
9,000
Audit Fees
5,000
Depreciation
3,35,000
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SLR-CX-21
Law Charges
5,000
Repairs
8,000
Workmen Welfare Expenses
55,000
Contribution to staff provided fund
75,000
Outstanding Custom Duty
1,00,000
Managing Agents Commission
2,00,000
Income Tax
4,00,000
Net Profit
20,50,000
2,06,55,000
2,06,55,000
Additional Information:
Rs. 1,800 of brokerage was paid for cotton and stores purchase and balance was in respect of loan for companies business.
Rates Rs. 3,500 insurance Rs. 2,500 and repairs of Rs. 5,000 were in respect of bungalows and chawls let out to employees.
Legal charges amounting to Rs. 2,000 were incurred in connection with the purchase of additional and building.
The staff provident fund was recognized one.
The amount of depreciation allowable u/s 32 of Income Tax Rules is Rs. 4,25,000.
Company has distributed dividend of Rs. 10,00,000 to its shareholders.
The company wants to claim a deduction of Rs. 1,00,000 under section 80IB as per provisions of Income Tax Act.
The company wants to set off brought forward loss of Rs. 3,25,000 pertaining to year 2005-06.
Donations were paid to Prime Minister National Relief Fund.
Ascertain the taxable income of the company for Assessment year 2017-2018.
Q.5
Kiran cooperative society has furnished you the following information for AY 17-18.
14
Income from processing the agriculture produces Rs. 40,000
Income from marketing the agriculture produces Rs. 8,000
Income from agency business Rs. 72,000
Income from letting of godowns Rs. 20,000
Dividend from other cooperative society Rs. 5,000
Interest on Government Securities Rs. 14,000
Compute the taxable income of the society.
OR
Explain the procedure of Appeal.