Kalpesh Classes

Question ​​ (ID 01) (Revision ​​ / Home work)

Can an assessee claim a particular deduction, which he has failed to claim in his original return​​ of income, otherwise than by filing a revised return ? Discuss.

Question ​​ (ID 02) (Revision ​​ / Home work)

“Proceedings cannot be initiated under the Act, unless a proper notice to the effect has been served upon.” In this context answer:

• What are the​​ prescribed modes of service of such notice?

• On whom should be notice be addressed and served upon in the cases where the assessee is a company, a dissolved firm, a deceases person and a partitioned HUF.

Question (ID 03)

An assessee receives an intimation​​ under section 143(1)(a) from the Assessing Officer, determining his income at a figure higher than the income returned by him. What is the remedy available to him, if he finds that the adjustments made by the Assessing Officer are not justified ?

Also comment on the action of the Assessing Officer in the following cases, relating to the assessment:​​ 

• He makes adjustments to the total income returned by an assessee on the basis of the past records.

• After sending an intimation to the assessee under section 143(1)(a), he takes up the case for scrutiny by issuing of a notice under section 143(2), and finds that the assessment would result in a refund. He declines to grant refund.

• An assessee claims a sum of Rs. 1 lakh paid towards sales tax after the close of the​​ accounting year but before filing the return, in the statement filed along with the return. The Assessing Officer refuses to allow the claim on the ground that no proof was attached in regard to the payment.

• A return of the income for year is filed beyond​​ the time limit prescribed under section 139 for the category of the assessee. An amount of Rs. 2 lakhs is the depreciation carried forward from 3 year back which the Assessing Officer has refused to adjust in the assessment made under section 143(1) in the current year.

Question ​​ (ID 05) (Revision ​​ / Home work)

Can the Assessing Officer complete the assessment under Section 144 of the Income-tax Act, 1961 even though there is no failure on the part of the assessee under Section 139(1), (4), (5), 142(1),​​ 142(2A) or 143(2) of the Act ? ​​ If so, under what situation ? ​​ 

Question (ID 06)

A company submitted the return of income for assessment year on 10th​​ July, AY. The Assessing Officer served a notice u/s 143(2) on the company on 14th​​ August, AY in order to​​ make assessment under section 143(3). Thereafter, on 1st​​ September, AY, the Assessing Officer issued an intimation under section 143(1). Such intimation shows a demand for Rs.10,500 towards tax and interest. The company argues that the issue of intimation​​ under section 143(1) is bad in law. Discuss.​​  

Question (ID 08) (Returns of Income)

An order under section 143(3) of the Income-tax Act, 1961 for the assessment year is received. On perusal of the order, the following two points are noticed.

• Credit of​​ Rs. 12,500 for T.D.S. was not given even though duplicate copy of Form 16A was submitted with the return of income.

• Unpaid sales tax liability of Rs. 23,600 on 31-3-PY was actually paid on 28-9-AY before submitting the return of income. This amount is​​ disallowed.

Question (ID 07) (Returns of Income)

XYZ Polyfibres, a partnership firm, has earned a gross total income of Rs. 300 lakh for the year. There are no international transactions.

The above includes a profit of Rs. 220 lakh from an industrial undertaking having a turnover of Rs. 80 crore. This is the fifth year and deduction under section 80-IB is available to the extent of Rs. 200 lakh.​​ 

There are some grey areas in the taxation workings an hence the assessee is contemplating to file the return of income on December 7 AY, after seeking clarifications from tax experts. Advise the assessee-company by working out the total income and tax payable, where the return is filed on October 31, AY and when the same is filed on December 7, AY.

What is the practical solution as regards obtaining clarifications, which might or might not have an impact on the total income ?​​ 

List of Important Question to be glanced for Revision before exam.

Wishing You all the best for exams.​​