Asssessment

The amount of bonus received under a Keyman Insurance Policy is assessed as:

• (a) Salary by virtue of Section 17(1)(i) of the I.T. Act, 1961.

• (b) Perquisite by virtue of Section 17(2) of the I.T. Act, 1961.

• (c) Income under the head other sources by virtue of Section 56 of the I.T. Act, 1961.

• (d) Profits & Gains of Business & Profession by virtue of Section 28(vi) of the I.T. act, 1961.

Q2. Section 117 empowers the ___ to appoint such persons as it thinks fit to be Income-tax authorities:

• (a) Principal Director-General of Income Tax (PDGIT)

• (b) Director-General of Income Tax (DGIT)

• (c) Central Government

• (d) Chairman, CBDT.

Scheme Formulated under section 135A to impart greater efficiency transparency and accountability by:

(i) Eliminating the interface between the income tax authority or any other person to the extent technologically feasible.

(ii) Optimising utilisation of resources through economies of scale.

(iii) Introducing a team-based exercise of powers including to call for, or to collect, or process or utilize the information.

(iv) Eliminating professional interaction with Income-tax authority.

Choose the correct option:-

• (a) (i) and (ii)

• (b) (ii) and (iii)

• (c) (iii) and (iv)

• (d) (i), (ii) & (iii).

When the condonation application for claim of refund/loss is above 3 Crore for any one Assessment Year, then which income tax authority has power of acceptance/rejection vested.

• (a) Principal CIT or CIT

• (b) CCIT

• (c) Principal CCIT

• (d) CBDT.

Who is required to file return of income compulsorily?

• (a) Assessee whose total income is less than amount not chargeable to tax but electricity charges paid in the previous year is more than Rs. 1 lakh.

• (b) Assessee whose total income is less than amount not chargeable to tax but amount incurred for foreign travel in the previous year is more than Rs. 1 lakh.

• (c) Assessee whose total income is less than amount not chargeable to tax but the deposit in one or more savings bank account of the person, in aggregate, is Rs.1 lakh or more during the previous year.

• (d) Assessee whose total income is less than amount not chargeable to tax but his total gross receipts in profession exceeds Rs.1 lakh rupees during the previous year.

When, in the course of an assessment, the AO makes a reference to the valuation officer u/s 142A, the report shall be submitted by the Valuation Officer within a period of

• (a) One year from the end of the month in which reference is made.

• (b) One year from the end of the year in which reference is made.

• (c) 6 months from the end of the month in which reference is made.

• (d) 6 months from the end of the year in which reference is made.

The AO in a case invokes sec 144 and proceeds

to frame assessment to the best of her judgment

after giving assessee an opportunity in form of

Show-cause Notice. As per the Act, which of

the following failure of the assessee could stand-

alone justify framing of assessment u/s 144 of

the Act in a case.

• (a) The assessee having failed to make return as required u/s 139(1) but filed return only after notice u/s 148 was issued.

• (b) The assessee having failed to comply with directions u/s 142(2A) of the Act issued after following due procedure.

• (c) The assessee having filed evidence and information in responses to 5 out of 6 specific questions/requirements raised in the notice u/s 142(1) while failed to furnish the details in respect of 6th question.

• (d) Both (b) as well (c) above.

The Income-tax Act, 1961 imbibes the concept of "Representative assessee". In this regard, examine the following statements:

1. The concept is legally enshrined u/s 159 of the Act as a sub-category of legal representative.

2. The term "Representative assessee" is defined u/s 160 of the Act and the definition is inclusive one.

3. The Act doesn't expressly defines "Representative assessee" in respect of the income of a lunatic or idiot as such assessee is not capable of regularly deriving income due to social as well as psychological constraints.

4. In respect of the income of a non-resident specified in sub-section (1) of section 9, the agent of the non-resident, including a person who is treated as an agent under section 163 is treated as Representative assessee.

Which of the statements is/are correct?

• (a) 1, 2 and 3

• (b) Only 4

• (c) 2, 3 and 4

• (d) 1,2 and 4.

When an assessee is in default or is deemed to

be in default in making a payment of tax:

(ⅰ) The Assessing Officer may draw a certificate to the Tax Recovery Officer (TRO) specifying tax arrears due from the assessee for recovery.

(ii) The Tax Recovery Officer may draw up a certificate specifying tax arrears due from the assessee for recovery.

(iii) The Assessing Officer is authorised to recover the tax u/s 226 of the Act even after certificate has been drawn for recovery of tax due u/s 222 of the Act.

(iv) The Tax Recovery Officer is authorized to recover the tax by any modes provided u/s 226 of the Act where a certificate has been drawn up u/s 222 of the Act.

Select the most appropriate options regarding above statements:

• (a) Only statements (i) and (ii) are incorrect

• (b) Only statements (i) and (iii) are incorrect

• (c)Only statements (ii) and (iii) are incorrect

• (c)Only statements (i) and (iv) are incorrect

Which of the following is not an appealable order?

• (a) Order passed under section 92CA(3) of the Income-tax Act, 1961

• (b) Order passed under section 154 of the Income-tax Act, 1961

• (b) Order passed under section 201 of the Income-tax Act, 1961

• (b) Order passed under section 221 of the Income-tax Act, 1961