Solapur University Question Paper
M.Com. (Part – I) (Semester – II) (Old) Examination, 2014
TAXATION (Paper – II) (Gr. – C)
Day and Date : Monday, 21-4-2014 Total Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instruction : Figures to right indicate full marks.
1. Select the right answer from given alternatives. 10
1) In case of AOP whose members are other than foreign company and their
shares are unknown, the tax shall be charged
a) at the rate applicable to individuals
b) at the maximum marginal rate i.e. 30% + surcharge as applicable +
education cess @ 3%
c) at the rate of 40% + 2.5% surcharge + education cess @ 3%
2) Where the AOP/BOI has paid tax on its income @ 30% or at a higher rate,
the share of the profit which a member gets from the AOP/BOI ?
a) shall be included in the total income of a member
b) shall be included in the total income of a member but a rebate of income
tax at the average rate will be allowed as per section 86
c) shall not be included in the total income of the member
3) A surcharge of 10% on income tax is payable by
a) any Company
b) an Indian Company
c) a Domestic company
4) Income tax on dividend is payable by
a) a Public Limited Company
b) a Share Holder
c) a Domestic Company
SLR-N – 33 -2-
5) The minimum and maximum penalty under Section 271 (1) (c) for concealing
particulars of income or furnishing inaccurate particulars of such income
shall be
a) 100% of the amount of tax sought to be evaded and 300% of such tax
respectively
b) 100% of the amount of tax sought to be evaded and 200% of such tax
respectively
c) 100% of the amount of the income sought to be evaded and 300% of such
income
6) The minimum and maximum penalty under Section 272 A(1) (d) for failure to
apply for allotment of PAN under Section 139A or quote such number in
challan.etc. shall be
a) Rs. 500
b) Rs. 500 and Rs. 5,000
c) Rs. 10,000
7) If the assessee or the Assessing Officer is not satisfied with the order of
Commissioner (Appeals), the second appeal lies to
a) High Court directly
b) Appellate Tribunal
c) High Court on a reference by the Appellate Tribunal
8) The appeal to the Appellate Tribunal should be made in
a) Form 35 b) Form 36 c) Form 36A
9) The memorandum of cross objection must be filed in
a) Form No. 36
b) Form No. 36A
c) Form No. 37
10) Revision of order not covered by Section 263 can be done by Commissioner
a) On the request of the assessee
b) On his own motion or on the request of the assessee
c) On the request of the Assessing Officer
-3- SLR-N – 33
2. A) Write short notes on any two : 5
1) Indian Company
2) Tax Planning and Tax Management
3) Appeals to Supreme Court
4) Deduction u/s 80P for Co-operative Society.
B) Write short notes on any two : 5
1) Search under Income Tax Act
2) List of orders that can be appealed before the CIT (Appeals)
3) Foreign Company
4) Difference between AOP/BOI.
3. A) For the Assessment Year 2012-13, the Mumbai Co-operative Society derives
total income from the following sources : 5
Income from processing with the Aid of Power Rs. 10,000 ; Income from
collective disposal of labour of its members Rs. 15,000 ;Interest from another
co-operative society Rs. 30,000 ; Income from house property Rs. 80,000 and
Income from other business Rs. 11,000. Determine its taxable income.
B) Dadar Co-operative Society is engaged in processing agricultural produce
of its members without the aid of power and in its marketing, furnishes the
following particulars : 5
Income from processing of agricultural produce Rs. 17,000 ; Income from
marketing agricultural produce Rs. 3,000 ; Dividends from another co-operative
society Rs. 55,000 ; Income from letting of godowns Rs. 10,000 and Income
from agency business Rs. 85,000/-, Interest on Deposit with Co-operative
Bank Rs. 10,000, Income from House Property Rs. 9,000.
Determine its total income for the assessment year 2012-2013.
SLR-N – 33 -4-
4. A) The Profit and Loss Account of R Ltd. for the year ended 31-03-2012, showed
Net Profit of Rs. 2,50,000. 10
a) The Profit and Loss Account included in the Debit side of the following :
i) Rs. 20,000 interest paid on Money borrowed for extending the company’s
factory premises, the explanation was however still in progress.
ii) The depreciation provided in the Book Rs. 50,000 ; however the amount
computed under the Income Tax Act Rs. 1,50,000.
iii) Rs. 25,000 was paid to the company’s lawyer for arguing appeals of
the company before the Tribunal against levy of penalty for some earlier
which appeals have been dismissed by the Tribunal.
iv) Rs. 3,000 paid for late payment of Professional Tax as penal Interest.
v) Rs. 500 being fine imposed by the Municipality for violating their
regulations.
vi) Reserve for Bad Debts Rs. 15,000
b) The credit side of the Profit and Loss Account included
Dividend from
i) Company’s Foreign Subsidiary in Japan Rs. 10,000
ii) Unit Trust of India Rs. 25,000.
c) It is also observed that both the opening stock of Rs. 90,000 and closing
stock of Rs. 1,08,000 are undervalued by 10% on cost.
Compute the total income of the company for the assessment year 2012-2013.
OR
B) From the following Profit and Loss Account of A Co. Ltd., for the year ended
31-03-2012 and the further information given below, compute its total income
for Assessment Year 2012-2013 : 10
Particulars Rs. Particulars Rs.
Opening Stock 40,000 Sales 4,00,000
Purchases 2,50,000 Closing Stock 50,000
-5- SLR-N – 33
Salaries 60,000 Rent from Buildings 40,000
Travelling expenses 10,000
Legal Charges 5,000
Miscellaneous Exps. 6,000
Office Rent 12,000
Advertising 7,000
Municipal taxes 4,000
Repairs 2,000
Fire Insurance 1,000
Bad Debts 3,500
Bad Debts Reserve 2,500
Provision for taxation 45,000
Donations 4,000
Depreciation 8,000
Net Profit 30,000
Total 4,90,000 Total 4,90,000
5. A) T and Q are individuals who constitute an Association of persons, sharing
profit and losses in the ratio of 2:1, for the accounting year 31-03-2012 the
profit and loss account of the business was as under : 10
Particulars Rs. Particulars Rs.
Cost of goods sold 42,50,000 Sales 49,00,000
Remuneration to : T 1,30,000 Dividends from companies 25,000
Q 1,70,000 Long term capital gains 6,40,000
Employees 2,56,000
Interest - T 48,300
- Q 35,700
SLR-N – 33 -6-
Other expenses 1,11,700
Sales tax penalty due 39,000
Net profit 5,24,300
55,65,000 55,65,000
Additional information furnished :
1) Other expenses included
a) Entertainment expenses of Rs. 35,000
b) Wrist watches costing Rs. 2,500 each were given to 12 dealers, who had
exceeded the sales quota prescribed under a sales promotion scheme.
2) Employer’s contribution of Rs. 6,000 to the Provident Fund was paid on
14-01-2012.
3) Rs. 30,000 was paid in cash to an advertising agency for publicity.
4) Outstanding sales tax penalty was paid on 15-10-2011. The penalty was
imposed by the sales-tax officer for non -filling of returns and statements by
the due dates. T and Q had, for this year, income from other sources of
Rs. 94,000 and Rs. 32,000 respectively.
Required to compute the Total Income and Tax Liability of the AOP for the
A.Y. 2012-13.
OR
B) Rajiv and Rahul are equal members of an AOP carrying on business. The
Profit and Loss Account of the AOP for the year ended 31-03-2012 is as
follows. Compute the tax liability of the AOP for the A. Y. 2012-13.
Particulars Rs. Particulars Rs.
Selling and administrative expenses 1,05,000 Gross profit 3,00,000
Interest to members – Rahul 20,000 Miscellaneous receipts 10,000
-7- SLR-N – 33
Remuneration to members :
Rajiv 70,000
Rahul 70,000 1,40,000
Net profit : Rajiv 22,500
Rahul 22,500 45,000
Total 3,10,000 Total 3,10,000
Other information :
1) Selling and administration expenses include Rs. 30,000 paid to a consultant
in cash.
2) The other income/investment details of the members :
Member Income Nature of income Investment
Rajiv Rs. 1,40,000 Interest of fixed deposit from bank Purchase of NSC Rs. 10,000
Rahul Rs. 50,000 Dividend from Indian Co. Contribution to PPF Rs. 7,500
Compute the total income of the firm for the assessment year 2012-13 and
ascertain the tax payable by it.
_____________________
M.Com. (Part – I) (Semester – II) (Old) Examination, 2014
TAXATION (Paper – II) (Gr. – C)
Day and Date : Monday, 21-4-2014 Total Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instruction : Figures to right indicate full marks.
1. Select the right answer from given alternatives. 10
1) In case of AOP whose members are other than foreign company and their
shares are unknown, the tax shall be charged
a) at the rate applicable to individuals
b) at the maximum marginal rate i.e. 30% + surcharge as applicable +
education cess @ 3%
c) at the rate of 40% + 2.5% surcharge + education cess @ 3%
2) Where the AOP/BOI has paid tax on its income @ 30% or at a higher rate,
the share of the profit which a member gets from the AOP/BOI ?
a) shall be included in the total income of a member
b) shall be included in the total income of a member but a rebate of income
tax at the average rate will be allowed as per section 86
c) shall not be included in the total income of the member
3) A surcharge of 10% on income tax is payable by
a) any Company
b) an Indian Company
c) a Domestic company
4) Income tax on dividend is payable by
a) a Public Limited Company
b) a Share Holder
c) a Domestic Company
SLR-N – 33 -2-
5) The minimum and maximum penalty under Section 271 (1) (c) for concealing
particulars of income or furnishing inaccurate particulars of such income
shall be
a) 100% of the amount of tax sought to be evaded and 300% of such tax
respectively
b) 100% of the amount of tax sought to be evaded and 200% of such tax
respectively
c) 100% of the amount of the income sought to be evaded and 300% of such
income
6) The minimum and maximum penalty under Section 272 A(1) (d) for failure to
apply for allotment of PAN under Section 139A or quote such number in
challan.etc. shall be
a) Rs. 500
b) Rs. 500 and Rs. 5,000
c) Rs. 10,000
7) If the assessee or the Assessing Officer is not satisfied with the order of
Commissioner (Appeals), the second appeal lies to
a) High Court directly
b) Appellate Tribunal
c) High Court on a reference by the Appellate Tribunal
8) The appeal to the Appellate Tribunal should be made in
a) Form 35 b) Form 36 c) Form 36A
9) The memorandum of cross objection must be filed in
a) Form No. 36
b) Form No. 36A
c) Form No. 37
10) Revision of order not covered by Section 263 can be done by Commissioner
a) On the request of the assessee
b) On his own motion or on the request of the assessee
c) On the request of the Assessing Officer
-3- SLR-N – 33
2. A) Write short notes on any two : 5
1) Indian Company
2) Tax Planning and Tax Management
3) Appeals to Supreme Court
4) Deduction u/s 80P for Co-operative Society.
B) Write short notes on any two : 5
1) Search under Income Tax Act
2) List of orders that can be appealed before the CIT (Appeals)
3) Foreign Company
4) Difference between AOP/BOI.
3. A) For the Assessment Year 2012-13, the Mumbai Co-operative Society derives
total income from the following sources : 5
Income from processing with the Aid of Power Rs. 10,000 ; Income from
collective disposal of labour of its members Rs. 15,000 ;Interest from another
co-operative society Rs. 30,000 ; Income from house property Rs. 80,000 and
Income from other business Rs. 11,000. Determine its taxable income.
B) Dadar Co-operative Society is engaged in processing agricultural produce
of its members without the aid of power and in its marketing, furnishes the
following particulars : 5
Income from processing of agricultural produce Rs. 17,000 ; Income from
marketing agricultural produce Rs. 3,000 ; Dividends from another co-operative
society Rs. 55,000 ; Income from letting of godowns Rs. 10,000 and Income
from agency business Rs. 85,000/-, Interest on Deposit with Co-operative
Bank Rs. 10,000, Income from House Property Rs. 9,000.
Determine its total income for the assessment year 2012-2013.
SLR-N – 33 -4-
4. A) The Profit and Loss Account of R Ltd. for the year ended 31-03-2012, showed
Net Profit of Rs. 2,50,000. 10
a) The Profit and Loss Account included in the Debit side of the following :
i) Rs. 20,000 interest paid on Money borrowed for extending the company’s
factory premises, the explanation was however still in progress.
ii) The depreciation provided in the Book Rs. 50,000 ; however the amount
computed under the Income Tax Act Rs. 1,50,000.
iii) Rs. 25,000 was paid to the company’s lawyer for arguing appeals of
the company before the Tribunal against levy of penalty for some earlier
which appeals have been dismissed by the Tribunal.
iv) Rs. 3,000 paid for late payment of Professional Tax as penal Interest.
v) Rs. 500 being fine imposed by the Municipality for violating their
regulations.
vi) Reserve for Bad Debts Rs. 15,000
b) The credit side of the Profit and Loss Account included
Dividend from
i) Company’s Foreign Subsidiary in Japan Rs. 10,000
ii) Unit Trust of India Rs. 25,000.
c) It is also observed that both the opening stock of Rs. 90,000 and closing
stock of Rs. 1,08,000 are undervalued by 10% on cost.
Compute the total income of the company for the assessment year 2012-2013.
OR
B) From the following Profit and Loss Account of A Co. Ltd., for the year ended
31-03-2012 and the further information given below, compute its total income
for Assessment Year 2012-2013 : 10
Particulars Rs. Particulars Rs.
Opening Stock 40,000 Sales 4,00,000
Purchases 2,50,000 Closing Stock 50,000
-5- SLR-N – 33
Salaries 60,000 Rent from Buildings 40,000
Travelling expenses 10,000
Legal Charges 5,000
Miscellaneous Exps. 6,000
Office Rent 12,000
Advertising 7,000
Municipal taxes 4,000
Repairs 2,000
Fire Insurance 1,000
Bad Debts 3,500
Bad Debts Reserve 2,500
Provision for taxation 45,000
Donations 4,000
Depreciation 8,000
Net Profit 30,000
Total 4,90,000 Total 4,90,000
5. A) T and Q are individuals who constitute an Association of persons, sharing
profit and losses in the ratio of 2:1, for the accounting year 31-03-2012 the
profit and loss account of the business was as under : 10
Particulars Rs. Particulars Rs.
Cost of goods sold 42,50,000 Sales 49,00,000
Remuneration to : T 1,30,000 Dividends from companies 25,000
Q 1,70,000 Long term capital gains 6,40,000
Employees 2,56,000
Interest - T 48,300
- Q 35,700
SLR-N – 33 -6-
Other expenses 1,11,700
Sales tax penalty due 39,000
Net profit 5,24,300
55,65,000 55,65,000
Additional information furnished :
1) Other expenses included
a) Entertainment expenses of Rs. 35,000
b) Wrist watches costing Rs. 2,500 each were given to 12 dealers, who had
exceeded the sales quota prescribed under a sales promotion scheme.
2) Employer’s contribution of Rs. 6,000 to the Provident Fund was paid on
14-01-2012.
3) Rs. 30,000 was paid in cash to an advertising agency for publicity.
4) Outstanding sales tax penalty was paid on 15-10-2011. The penalty was
imposed by the sales-tax officer for non -filling of returns and statements by
the due dates. T and Q had, for this year, income from other sources of
Rs. 94,000 and Rs. 32,000 respectively.
Required to compute the Total Income and Tax Liability of the AOP for the
A.Y. 2012-13.
OR
B) Rajiv and Rahul are equal members of an AOP carrying on business. The
Profit and Loss Account of the AOP for the year ended 31-03-2012 is as
follows. Compute the tax liability of the AOP for the A. Y. 2012-13.
Particulars Rs. Particulars Rs.
Selling and administrative expenses 1,05,000 Gross profit 3,00,000
Interest to members – Rahul 20,000 Miscellaneous receipts 10,000
-7- SLR-N – 33
Remuneration to members :
Rajiv 70,000
Rahul 70,000 1,40,000
Net profit : Rajiv 22,500
Rahul 22,500 45,000
Total 3,10,000 Total 3,10,000
Other information :
1) Selling and administration expenses include Rs. 30,000 paid to a consultant
in cash.
2) The other income/investment details of the members :
Member Income Nature of income Investment
Rajiv Rs. 1,40,000 Interest of fixed deposit from bank Purchase of NSC Rs. 10,000
Rahul Rs. 50,000 Dividend from Indian Co. Contribution to PPF Rs. 7,500
Compute the total income of the firm for the assessment year 2012-13 and
ascertain the tax payable by it.
_____________________
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