Calicut University 2009 B.Com Part III – XV – Optional Subject A TAXATION LAW AND ACCOUNTS – II - Question Paper

part – A
ans any ten ques.. every ques. carries two marks.
1. What is meant by closely held company ?
2. State any 2 authorities to whom appeal can be filed under Income Tax Act.
3. What is an Association of Person ?
4. What is the rate of income tax for a domestic company ?
5. What is Minimum Alternate Tax ?
6. Who is a working partner ?
7. elaborate the pre-requisition for Appeal ?
8. Who can be a member of Appellate Tribunal ?
9. Who is a 'principal officer' ?
10. Who has the power to make revisions ?
11. What is Maximum Marginal Rate ?
12. What is the special feature of prosecution ? (10×2=20 Marks)

part – B
ans any 8 ques.. every ques. carries five marks.
13. elaborate payments on which tax is deducted at source ?
14. elaborate the various kinds of assessment ?
15. Distinguish ranging from change in the Constitution and succession of firm.
16. State any 4 offences and their punishment on prosecution.
17. define the provisions of legal regulations relating to tax on undistributed profits of companies.
18. discuss the powers of Central Board of Direct Taxes.
19. How is "jewellery" valued under Wealth Tax Act ?
20. Distinguish ranging from Tax planning and Tax management.
21. State briefly the provisions relating to penalty.
22. From the subsequent info calculate the Net wealth of an Indian company.
1. Stock in trade :
a) Residential House 6,00,000
b) Jewellery 4,00,000
c) Urban land purchased in 2004 2,50,000
2. Purchased land in urban area to construct residential
houses for staff but so for construction has not been started 1,50,000
3. Trucks to carry material for construction of houses 2,00,000
4. Cars for use of officers 60,000
5. Bank Balance 1,00,000
6. Cash Balance 20,000
23. X and Y are partners in a firm sharing profits and losses in the ratio of 2:1. They are
working partners and are entitled to salary of Rs. 3,000 p.m. and Rs. 2,000 p.m.
respectively. The profits of the firm before charging salary to partners are
Rs. 30,000 and income from house property (computed) Rs. 10,000.
calculate the total Income of the firm for the assessment year 2008-09.
24. The book profits of a company in the previous year 2007-08 calculated in accordance
with part 115 JB of the Income Tax Act is Rs. 17,00,000. Its total income under
the Income Tax Act for the identical period is calculated at Rs. 3,50,000. Is the company
liable to pay "Minimum Alternate Tax" ? If yes, how much has to be paid ?
(8×5=40 Marks)

part – C
ans any 2 ques.. every ques. carries 20 marks.
25. discuss the general powers of income tax authorities.
26. discuss the procedures of an appeal to Commissioner (Appeals) and his powers
to deal with such appeal.
27. During the previous year 2007-08 an A.O.P had suffered a loss of Rs. 10,000 after
charging salary, bonus and interest on capitals to its members. Taxable income of
A.O.P. for the identical period from House property and long term capital gains was
Rs. 72,000 and Rs. 12,000 respectively. There are 3 members A, B and C in the
AOP sharing profits and losses in the ratio of 5:3:2 and their income from business
and profession for the previous year 2007-08 is Rs. 60,000, Rs. 80,000 and
Rs. 90,000 respectively.
In addition to it AOP paid Rs. 6,000, Rs. 10,000 and Rs. 14,000 as interest on
capital to A, B and C respectively. Salary paid to A was Rs. 16,000 and bonus paid
to B was Rs. 5,000 in this period.
calculate the total Income and tax liability of AOP for the A.Y. 2008-09.
1006 -4- 
28. The subsequent is the Profit and Loss Account of Spencer and Co. Ltd. for the year
ended 31st March 2008.
Rs. Rs.
To Salaries and Wages 3,00,000 By Domestic Sales 25,00,000
'' Rent & Rates 2,00,000 '' Export Sales 10,00,000
'' Repairs 1,20,000 '' Transfer from
'' Selling Expenses 3,50,000 General Reserve 2,00,000
'' Depreciation 5,00,000
'' Income Tax 3,60,000
'' Proposed Dividend 2,70,000
'' Net profit 16,00,000
37,00,000 37,00,000
Other Informations :
1. The Company has long term capital gain of Rs. 1,00,000, which is not credited
to Profit and Loss Account.
2. Foreign Exchange remittance Rs. 7,00,000
3. Depreciation Rs. 4,50,000
4. The Company wants to set off the subsequent :
For Tax For Accounting
Purpose Purpose
Rs. Rs.
Brought Forward Loss of 2004-05 5,00,000 4,00,000
Unabsorbed Depreciation 2,00,000 2,00,000
You are needed to calculate the Total Income of the Company for the A.Y. 2008-09.
(2×20=40 Marks)

Earning:   Approval pending.