Assessment Procedure-test 05.03.2010 Answers

8/8/2019 Assessment Procedure-test 05.03.2010 Answers

1/8

ASSESSMENT PROCEDURE

TEST

1. Which one of the following may not be considered an essential principle of

natural justice.

a. Application of mind

b. Opportunity to be heard

c. Written order

d. Speaking order

2. Which is the senior most Income-tax Authority among the following

a. Chief Commissioner of Income-tax

b. Director General of Income-tax

c. Revenue Secretary

d. Member, CBDT

3. Which of the following defines Public Servant

a. General Clauses Act

b. Constitution of India

c. Sec 117 of Income-tax Act

d. Indian Penal Code

4. Which is not true with respect to AO (Assessing Officer)

a. Every AO is also an Income-tax authority

b. Every Assistant Commissioner of Income-tax is an AO unlessposted in a Directorate

c. Every Joint Commissioner is not necessarily an AO

d. Commissioner cannot be an AO


2/8

5. When may a definition of a word given in Section 2 of Income-tax Act notbe applicable

a. When such a definition is against the interest of revenue

b. When a Court defines it otherwise

c. When it leads to absurdity

d. When it is not accepted by the assessee

6. Supreme Court and the High Court derive their powers from

a. Income-tax Act

b. Constitution of India

c. Indian Penal Code

d. Civil Procedure Code

7. Which is not true with respect to the Tax Recovery Officer (TRO)

a. TRO is also an Income-tax authority

b. Only an Income-tax Officer can be a TRO

c. A TRO can also exercise some of the powers of the AO

d. An officer holding the charge of TRO cannot be an AO at thesame time

8. Which of the following is not necessarily an assessee

a. A person by whom a penalty is payable under the Income-tax Act

b. A person who is deemed to be an assessee

c. A person who is deemed to be an assessee in default

d. The guardian of a minor

9. Which of the following is not a person under the Income-tax Act

a. A person born as test-tube baby

b. A company


3/8

c. A deceased person

d. A partnership not registered with either Income-tax Department orunder the partnership Act

10.Which of the following is the most unlikely to be considered an AOP(Association of persons)

a. An illegally constituted firm carrying a business

b. A group of individuals who participate as individualcompetitors but share a reward

c. An HUF which is partitioned but continues to carry on its business (aswas carried earlier)

d. A business carried out jointly by two firms

11.Which of the following statements about Company is not true

a. A Public Company includes every company that is not a privatecompany

b. A Private Company includes every company that is not a Publiccompany

c. A Domestic Company is always an Indian Company

d. An Indian Company is always a Domestic Company

12.Which of the following is not defined in Income-tax Act

a. Government Company

b. Foreign Company

c. Public Sector Company

d. Company in which public are substantially interested

13.Which of the following is not an essential feature of a firm

a. Partners choose a managing partner who decides the shareof each partner

b. It has more than one partner


4/8

c. Partners have agreed to share profits of business carried out by all

d. Every partner acts for all the partners

14.With respect to Previous Year and Assessment Year, which is not alwaystrue

a. A Previous year consists of twelve months

b. For previous year 2005-06, the assessment year will be 2006-07

c. An assessment year consists of twelve months

d. For income assessable in Assessment year 2004-05, the T.D.S. willbe deducted during the previous year 2003-04 itself

15.Which of the following is the most likely to be assessed as income

a. Receipts

b. Gift

c. Winning from a lottery

d. Loans received from a foreigner

16.As per definition u/s 2 of Income-tax Act, Assessment includes

a. Self-assessment

b. Processing of return

c. Filing of return

d. Reassessment

17.Which of the following is not necessarily an assessee

a. Agent of non-resident assessee

b. A Legal Representative

c. An Authorised Representative

d. A charitable trust

e. All the above are assessee


5/8

18.The word prescribed means

a. Prescribed in the Income-tax Act

b. Prescribed by the Central Government

c. Prescribed by the Income-tax Rules

d. Prescribed by the Assessing Officer

e. Prescribed by any of the above

19.Which of the following is required to file a return of income

a. An individual with income below the maximum amount notchargeable to tax

b. A company with income below maximum amount notchargeable to tax

c. A trust with no income

d. None of the above

20.Which is the head of income which does not require filing of return of income for carrying forward a loss under it

a. Profits under Business and profession

b. Profits from speculative business

c. Capital Gains

d. Income from House property

21.Which subsection / proviso in Section 139 provides that a salaried personwhose total income without giving effect to deduction under chapter VI-Ais more than the maximum amount not chargeable to tax will be requiredto file a return

a. Subsection 2

b. Third proviso to subsection 1

c. Fourth proviso to subsection 1

d. Subsection 4A


6/8

22.Which of the following is always required to file a return even if its incomeis not above the maximum amount not chargeable to tax

a. Charitable trust u/s 11 & 12

b. Educational Institute referred u/s 35 (1) (ii) & (ii)

c. Political party u/s 13 A

d. All the above

23.For the income earned during the current financial year which is the lastday for filing a return under any subsection of section 139 (provided

assessment is not completed before that date)

a. 31.3. 2012

b. 31.3.2011

c. 31.12.2012

d. 31.12.2011

24.If the Assessing officer identifies a defect u/s 139 (9) in the return of income, what should he do

a. Give an opportunity to assessee to rectify that defect

b. Treat it as an invalid return

c. Ask assessee to file a revised return

d. Complete assessment expediently

25.Which one of the following is not included as a defect u/s 139 (9)

a. Failure to enclose the proof of paying taxes

b. Unsigned return

c. Failure to enclose statements of accounts in case of assesseerequired to maintain the books of account

d. Failure to fill a few columns in the return of income


7/8

Answers

1 c

2 d

3 d

4 b

5 c

6 b

7 d

8 d

9 c

10 b

11 c

12 a

13 a

14 a

15 c

16 d

17 c

18 c

19 b

20 d

21 c

22 b

23 a

24 a

25 b


8/8

Assessment Procedure-test 05.03.2010 Answers

Documents

Transcript of Assessment Procedure-test 05.03.2010 Answers