M.Com. (Semester II) (CBCS) Examination Oct/Nov-2017
TAXATION
Day Date: Monday, 20-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
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
Foreign company is a company which is not a company.
Foreign Domestic
International None of these
Book profit means profit as shown by
Profit Loss Balance Sheet
Trading Account Manufacturing Account
The of Income-tax (Appeals) is the first appellate authority.
Commissioner Officers
Staff Clerks
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
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
Section the orders against which an appeal can be filed
before the Commissioner of Income tax (Appeals).
261 260A
253 246A
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 filling the
appeal before the Commissioner of Income-tax (Appeals) are
Rs. 250 Rs. 500
Rs. 1,000 Rs. 10,000
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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
10) 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
whichever is less.
1500000 150000
15000 None of these
11) 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
12) 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
13) 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
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
271H. Minimum penalty can be levied of Rs. 10,000 which can go up to

1,00,000 2,00,000
3,00,000 None of this
Q.2 Write short answer. 14
Appeals revisions
Provisions relating to survey
Q.3 Write short notes. 14
Indian Company
Book profits of company
Q.4 Explain Penalties and prosecutions under Income Tax Act 1961. 14
OR
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Q.4 The following is the Profit Loss Account of DG Ltd. For the year ended 31st
March 2017.
Particulars Amount

Particulars Amount

Cotton 11418000 Yarn account 10811000
Stores 1836000 Cotton Account 9625000
Mills Salaries Wages 3832000 Waste Account 121000
General Expenses 29000 Transfer Fees 8000
Donations 10000 Rent of Bungalows Chawls 58000
Rent Insurance 40000 Dividend from MFL 32000
Brokerage 7000
Office Expenses 241000
Directors Fees 9000
Audit Fees 5000
Depreciation 335000
Law Charges 5000
Repairs 8000
Workmen Welfare Expenses 55000
Contribution to staff provided
fund
75000
Outstanding Custom Duty 100000
Managing Agents
Commission
200000
Income Tax 400000
Net Profit 2050000
20655000 20655000
Additional Information:
1. Rs. 1800 of brokerage was paid for cotton and stores purchase and balance
was in respect of loan for companies business.
2. Rates Rs. 3500 insurance Rs. 2500 and repairs of Rs. 5000 were in respect
of bungalows and chawls let out to employees.
3. Legal charges amounting to Rs. 2000 were incurred in connection with the
purchase of additional and building.
4. The staff provident fund was recognized one.
5. The amount of depreciation allowable u/s 32 of Income Tax Rules is Rs.
425000.
6. Company has distributed dividend of Rs. 1000000 to its shareholders.
7. The company wants to claim a deduction of Rs. 100000 under section 80IB
as per provisions of Income Tax Act.
8. The company wants to set off brought forward loss of Rs. 325000 pertaining
to year 2005-06.
9. Donations were paid to Prime Minister National Relief Fund.
Ascertain the taxable income of the company for Assessment year 2017-2018.
Q.5 Explain Provisions under Income Tax Act 1961 for curbing Tax evasion, tax
avoidance.
14
OR
Explain Provisions relating to survey search under the Income Tax Act 1961.