| 1. | (a) | Fill in the blanks: | 1x6=6 | |
| | | (i) | A revised return under section 139(5) may be filed within ________ years from the end of the assessment year or before the completion of assessment whichever is ________. | | (0) |
| | | (ii) | In case of a trader in commodities transaction tax ________ (is/is not) allowed as deductible business expenditure. | | (0) |
| | | (iii) | The deduction for amortization of preliminary expenses under section 35D is allowed at ________ of the qualifying expenditure in each of the ________ successive year beginning with the year in which business commences. | | (0) |
| | | (iv) | Import of simulators of helicopter is ________ (chargeable to/exempt from) customs duty. | | (0) |
| | | (v) | Where security has been furnished to the central sales tax authority in the form of a surety bond, death of surety should be intimated within ________ days of such occurrence and fresh surety bond furnished within ________ days. | | (0) |
| | | (vi) | Where the Excise Tariff rate is 10% but as per exemption notification the excise duty is 8%, additional duty of customs payable is ________. | | (0) |
| | (b) | State with reasons, whether the following statements are true or false: | 2x7=14 | |
| | | (i) | Shares held by an individual are not to be included in computing his net wealth. | | (0) |
| | | (ii) | Where the assessee has responded to a notice under section 143(2) of the Income Tax Act, 1961, he cannot later on raise the plea that it was served on him beyond the period of limitation. | | (0) |
| | | (iii) | Exemption from excise duty does not mean exemption from registration. | | (0) |
| | | (iv) | Advance ruling (IT) can be sought on a question relating to the tax liability of a resident. | | (0) |
| | | (v) | Expenditure on issue of partly convertible debentures is capital expenditure and hence cannot be claimed as deductible business expenditure. | | (0) |
| | | (vi) | Provisional assessment can be initiated by Excise Department. | | (0) |
| | | (vii) | EOUs are exempted from payment of customs duty. | | (0) |
| 2. | (a) | Explain the conditions to be satisfied for claiming deduction under section 37(1) of the IT Act, in brief. | 6 | (0) |
| | (b) | Discuss whether the following are admissible claims/deductible expenditure. These do not necessarily relate to the same assessee: | (i) | An assessee carries on business in respect of which it holds tenancy rights. It carried out improvements to the building concerned at a cost of Rs. 2 lakhs and claims depreciation @ 10% thereon. Assessing officer rejects the claim on the ground that the assessee is not the owner of the building. |
| (ii) | A criminal case is filed against a company under the Essential Commodities Act, 1955. The company incurs litigation expenses amounting is Rs. 50,000 to defend the directors. They are ultimately acquitted. |
| (iii) | Compensation is paid by a company for breach of contract to sell plant and machinery. |
| 2+1+1 | (0) |
| | (c) | X converts this capital asset (acquired: June 1967 for Rs. 70,000) (fair market value on 1.4.1981: Rs. 1,80,000) into stock in trade during the previous year relevant to assessment year 1985–86; when the fair market value is Rs. 4,80,000. Subsequently, he sells the stock so converted for Rs. 7,30,000 on June 20, 2008. Determine the amount of assessable profits. | 6 | (0) |
| 3. | (a) | Enumerate the assets excluded from the definition of "Capital Assets". | 5 | (0) |
| | (b) | Business loss cannot be carried forward for more than eight assessment years, state ONE exception to this Rule. | 5 | (0) |
| | (c) | State whether the following are agricultural or non–agricultural income: | (i) | Interest received by a money lender in the form of agricultural produce. | | (ii) | Interest on arrears of rent payable in respect of agricultural land. | | (iii) | Income derived from saplings for seedlings grown in nursery. |
| 6 | (0) |
| 4. | (a) | State with reasons whether the following constitute assets chargeable to Wealth Tax on the valuation date 31st March: | (i) | Agricultural Farm House situated within 22 kms of Niwai Municipal Corporation in Rajasthan. |
| (ii) | Factory building and godown leased out on rent. |
| (iii) | Silver and gold in the jewellery shop. |
| (iv) | Guest House and land appurtenant thereto. |
| (v) | Aircraft held by Air India. |
| 2x5=10 | (0) |
| | (b) | Give six examples of assets to be included in the taxable net wealth of the assessee. | 6 | (0) |
|
| 5. | (a) | State the conditions to be fulfilled for obtaining a written order from proper officer that will enable the person-in-charge of the conveyance which has loaded any exported goods to depart from a customs station. | 8 | (0) |
| | (b) | Hemalatha Plastics Ltd. opines that it is entitled to refund of Rs. 12,000 representing excess amount of Rs. 12,000 paid as interest under section 11 AB of the Central Excise Act, 1944. The refund application is opposed by the Department on the ground that section 11B provides for refund of duty erroneously paid and not the interest paid. Is the same justified? | 4 | (0) |
| | (c) | On 15.03.2009, Siddharth Ltd., Kolkata effected inter–state purchase of 1,000 watches from X Ltd., another registered dealer in Kochi. On 17.03.2009, Sidharth Ltd. entered into an agreement with Tagichi Inc. of Tokyo and exported the goods immediately. Can the sale by X Ltd. be regarded as penultimate sale for export? | 4 | (0) |
| 6. | (a) | Janak Metals Ltd. manufactures metal sheets which are captively consumed for manufacturing an end product. The end product is exempt from payment of central excise. Department contends that as the metal sheet is an intermediary product which by itself is marketable, excise duty should be paid on them since the end product is exempt from duty. The department is, however, unable to provide the marketability of the metal sheet. Discuss whether the Department’s contention is justified. | 4 | (0) |
| | (b) | Subramani Turbines Ltd., is engaged in manufacturing turbines, a dutiable product. From the following details of excise duty paid, ascertain the CENVAT credit admissible to them, for the year ended 31.03.2009. | (Rs.) | Raw metals
Petrol
Cylinder making machinery
Office equipment
Effluent Treatment Plant
Lubricant oil | 90,000
45,000
60,000
17,000
40,000
12,000 |
| 8 | (0) |
| | (c) | Can reference of valuation of building be made to the Valuation Officer during the course of wealth tax reassessment, by the Assessing Officer? | 4 | (0) |
| 7. | (a) | Mr. Mukhopadhyay has two houses, both of which are used for self–occupation. The brief particulars of income and expenditure relating to the two houses for the year ended 31.03.2009 are given below: | House A
(Rs.) | House B
(Rs.) | | Fair rent p.a. | 4,20,000 | 5,70,000 | | Municipal valuation p.a. | 5,10,000 | 5,34,000 | | Standard valuation p.a. | 4,80,000 | 6,00,000 | | Property tax paid | 48,000 | 60,000 | | Insurance for house | 12,000 | 14,000 | | Interest to bank on housing loan | 1,80,000 | 2,40,000 |
Compute the income from house property in such a manner that there is maximum tax benefit to the assessee. He has income from other source to the tune of Rs. 3,20,000. | 12 | (0) |
| | (b) | Who are the categories of taxpayers mandatorily required to pay income–tax electronically? Is there any concession available to these assessees/taxpayers in making such e–payment? | 4 | (0) |
| 8. | Write short notes on the following (any four): | 4x4=16 | |
| | (a) | Primary of circulars issued by CBEC over the decisions of Court; | | (0) |
| | (b) | MRP valuation for excise purposes where more than one product is packet in package. | | (0) |
| | (c) | Goods improperly removed from a warehouse under section 72 of the Customs Act, 1962. | | (0) |
| | (d) | Liability of Directors of a private limited company for Central Sales Tax dues. | | (0) |
| | (e) | Powers of the registering authority to forfeit the security under the Central Sales Tax Act, 1956. | | (0) |
| | (f) | Deemed satisfaction for initiation of penalty proceedings under section 271(1)(c) of the Income–tax Act, 1961. | | (0) |
