Assessment, Appeals & Revision – CS Executive Tax Laws MCQ

Going through the Assessment, Appeals & Revision – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

Assessment, Appeals & Revision – Tax Laws CS Executive MCQs

Question 1.
Choose the correct option
(a) The Central Govt, may appoint in-come-tax authorities.
(b) The income tax authority, when authorised by Board, may appoint executive of ministerial staff.
(c) The Board is empowered to control the income tax authority
(d) All of the above
Answer:
(d) All of the above

Question 2.
The power of the Central Board of Direct Taxes includes all except:
(a) Power to make Rules
(b) Power to issue orders , instructions and directions to all officers & persons. Employed
(c) Power to direct the Assessing Officer to make a particular assessment
(d) Power to relax mandatory provisions.
Answer:
(c) Power to direct the Assessing Officer to make a particular assessment

Question 3.
The power of director General includes all the following except:
(a) To appoint an income -tax authorities below the rank of an Assistant Commissioner
(b) To delegate the powers of Assessing Officer to joint Commissioner
(c) To transfer cases from one AO to another AO
(d) All of the above
Answer:
(d) All of the above

Question 4.
Which one is the power of Chief Commissioner or Commissioner of Income-tax
(a) Power of search and seizure
(b) Power to requisition books of account
(c) Power of survey
(d) All of the above
Answer:
(d) All of the above

Question 5.
The income-tax authority has power to retain in his custody books of accounting and other documents without obtaining the approval of principal Chief Commissioner not exceeding
(a) 30 days
(b) 15 days (executive of holiday)
(c) 15 days
(d) 45 days (executive of holiday)
Answer:
(b) 15 days (executive of holiday)

Question 6.
An Income-tax authority may enter, after, sunrise and before sunset, any office or “any other place” for the purpose of verification. Any place includes
(a) Place where business or profession is carried on
(b) Place where books of account, documents related to business are kept
(c) Place at which an activity for charitable purpose is carried on
(d) All of the above.
Answer:
(d) All of the above.

Question 7.
The premises of an assessee within the jurisdiction of an Assessing Officer can be surveyed during business hours by such Income-Tax Authority
(a) After sunset and before sunrise
(b) After sunrise but before sunset
(c) Any time during 24 hours
(d) After 11A.M.
Answer:
(b) After sunrise but before sunset

Question 8.
The assessment of an income which has escaped assessment can be reopened after the expiry of ……… Years from
the end of the relevant assessment year if sanctioned by :
(a) 3 years, CBDT
(b) 4 years, Chief Commissioner or Commissioner
(c) 4 years Additional or joint Commissioner
(d) 8 years, Chief Commissioner or Commissioner.
Answer:
(c) 4 years Additional or joint Commissioner

Question 9.
The Chief Commissioner or commissioner has power to revise any order:
(a) Which is prejudicial to the interest or revenue
(b) On his own motion
(c) On an application made by the assessee within prescribed time
(d) All of the above
Answer:
(d) All of the above

Question 10.
The power of Commissioner of Income-tax (Appeals) includes:
(a) Power regarding discovery, production of evidence.
(b) Power to call for information
(c) Power to inspect register of companies
(d) All of the above
Answer:
(d) All of the above

Question 11.
The power in respect of injury lines with
(i) Commissioner of Income-tax appear
(ii) Joint Director
(iii) Deputy Director
(iv) Assistant Director
(a) (i) only
(b) (i) & (ii) only
(c) (ii) & (iii)
(d) (i), (ii), (iii) & (iv)
Answer:
(d) (i), (ii), (iii) & (iv)

Question 12.
In disposing an appeal, the Commissioner of I.T (Appeals) has power to do all except.
(a) Confirm, reduce, enhance or annual or set aside the assessment
(b) Confirm, cancel or very the penalty
(c) Enhance penalty without giving the appellant a reasonable opportunity to show cause against enhancement
(d) To pass such order in appeal as he thinks fit.
Answer:
(c) Enhance penalty without giving the appellant a reasonable opportunity to show cause against enhancement

Question 13.
Self assessment is required when an assessee submits his return of income under section
(i) 139
(ii) 142
(iii) 148
(iv) 153A
(v) 158BC
(a) (i)&L (ii)
(b) (i), (iii),(iv)
(c) (i), (ii),(iii),(iv) & (v)
(d) (iii),(iv) & (v)
Answer:
(c) (i), (ii),(iii),(iv) & (v)

Question 14.
Where the amount paid by the assessee falls short of the aggregate of tax, interest and fee, the amount shall be adjusted first towards ……… and balance towards
(a) Interest & fee, tax
(b) Interest, tax
(c) Fee, tax
(d) Interest, fees
Answer:
(a) Interest & fee, tax

Question 15.
Scrutiny (Regular) assessment is made when the return of income u/sl39oru/s 142( 1) has been filed and Assessing Officer considers it necessary to ensure that the assessee has not:
(a) understated the income
(b) computed excessive loss
(c) underpaid the tax
(d) all of the above.
Answer:
(d) all of the above.

Question 16.
The notice u/s 143(2) of scrutiny as-sessment shall be served on the assessee
(a) Within a period of 6 months from the end of the financial year in which return is furnished
(b) Within a period of 6 months from the end of the due date of furnishing of return
(c) Within a period of 6 months from the end of the date of furnishing of return
(d) None of the above
Answer:
(a) Within a period of 6 months from the end of the financial year in which return is furnished

Question 17.
Assessment proceeding were initiated for assessing the income of XY Ltd. XY Ltd. got amalgamated with YZ Ltd. on 15.4.2018. The fact was brought to the notice of Assessing Officer. The assessment must be completed in the name of
(a) XYLtd.
(b) YZ Ltd.
(c) The discretion of Assessing Officer
(d) None of the above
Answer:
(b) YZ Ltd.

Question 18.
Best judgment assessment is done
(a) u/s 143(2)
(b) u/s 143(3A)
(c) u/s 144
(d) u/s 148
Answer:
(c) u/s 144

Question 19.
Best judgment assessment is done if
(a) The person fails to file return
(b) Fails to comply with all the terms of notice u/s 142 (1) or direction u/s 142(2A) or u/s 143(2)
(c) Both (a) &(b)
(d) None of the above
Answer:
(c) Both (a) &(b)

Question 20.
The show cause notice is required to be issued to the assessee for Best judgment assessment except:
(a) When notice is issued u/s 143(2)
(b) When self assessment is made u/s 140A
(c) When notice u/s 142(1)(i)has already been issued
(d) All of the above
Answer:
(c) When notice u/s 142(1)(i)has already been issued

Question 21.
Under Best judgment Assessment
(a) Assessing Officer cannot assess, the income below returned
(b) A.O cannot assess losses higher than returned losses
(c) A.O cannot grant refund
(d) All of the above.
Answer:
(d) All of the above.

Question 22.
The A.O. can complete the assessment u/s 144 of the Act even though there is no failure on the part of assessee u/s 139(1), 139(4), 139(5), 142(1), 142(2A) or 143(2) of the Act. Such powers by the A.O. may be exercised in the following situations :
(a) Where the A.O. is not satisfied about the correctness or completeness of the accounts of the assessee.
(b) Where the method of accounting has not been regularly followed by the assessee
(c) Where the income has not been computed in accordance with “ICDS” notified by the Central Government u/s 145(2).
(d) Any of above three or in all three above situations
Answer:
(d) Any of above three or in all three above situations

Question 23.
Reassessment or Income escaping assessment u/s 147, can be done by Assessing Officer after 4 years from the end of the assessment year if
(a) He has reason to believe that any income chargeable to tax has escaped assessment.
(b) The income has escaped by reason of omission or failure to disclose fully and truly all material facts or failure to furnish return u/s 139 or 142(1) or 148.
(c) Both (a) and (b)
(d) None of the above
Answer:
(b) The income has escaped by reason of omission or failure to disclose fully and truly all material facts or failure to furnish return u/s 139 or 142(1) or 148.

Question 24.
X filed his return of income for the A.Y. 2019-20 on 31st July, 2019. The return so filed was selected for scrutiny assessment. The notice under section 143(2) for making scrutiny assessment can be served by:
(a) 30th September, 2020
(b) 31 st December, 2019
(c) 31st March, 2020
(d) 31st December, 2020
Answer:
(a) 30th September, 2020

Question 25.
The time limit for serving notice u/s 148, where no assessment order has been passed is ………. years from the end of the relevant assessment year.
(a) 2
(b) 4
(c) Beyond 4 years but upto 6 years if income escaped exceeds ₹ 1,00,000.
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)

Question 26.
The time limit for issue of notice u/s 148, when income in relation to any asset located outside India, chargeable to tax has escaped assessment is from the end of the relevant assessment year.
(a) Upto 4 years
(b) upto 6 years
(c) Beyond 4 years but upto 8 years
(d) Beyond 4 years but upto 16 years
Answer:
(d) Beyond 4 years but upto 16 years

Question 27.
The reassessment is done u/s 147 and the notice was issued on 25.3.2019 pertaining to income of the assessment year 2014-15. The income escaped is ₹ 60,000. The notice was served on the assessee on 5.4.2019. Choose the correct option.
(a) It is a valid notice as it is served within 4 years.
(b) It is a invalid notice as it is served within 4 Years.
(c) It is a valid notice as it is issued within 4 years.
(d) It is a invalid notice as it is served after 4 Years.
Answer:
(c) It is a valid notice as it is issued within 4 years.

Question 28.
Where it is not clear as to who amongst the two persons has received the income, the Assessing Officer can commence proceedings against both the assessees to determine the question as to who is responsible for paying tax. This assessment is called as
(a) Summary assessment
(b) Scrutiny assessment
(c) Precautionary assessment
(d) Re-assessment
Answer:
(c) Precautionary assessment

Question 29.
The time limit prescribed under section 153 for completion of regular assessment under section 143(3) and best judgment assessment 144, is of ………. months from the end of assessment year in which the income was first assessable, from the previous year 2018-19 is
(a) 12
(b) 9
(c) 18
(d) 24
Answer:
(a) 12

Question 30.
The time limit for making Assessment/ Re-assessment u/s 147 when notice is served on or after 1.4.2019 is :
(a) 9 months from the end of the financial year in which notice for Re-assessment is served.
(b) 6 months from the end of the financial year in which notice for Re-assessment is served.
(c) 12 months from the end of the financial year in which notice for Re-assessment is served.
(d) 15 months from the end of the financial year in which notice for Re-assessment is served.
Answer:
(c) 12 months from the end of the financial year in which notice for Re-assessment is served.

Question 31.
Notice for assessment or re-assessment of the escaped income of non-resident can-not be issued to the statutory agent of the non-resident after expiry of ……. years from the end of the relevant assessment year.
(a) 4
(b) 6
(c) 2
(d) 16
Answer:
(b) 6

Question 32.
In the appellate hierarchy for filing appeals under the Income-tax Act, the highest authority is:
(a) Supreme Court
(b) CBDT
(c) Central Government
(d) High Court
Answer:
(a) Supreme Court

Question 33.
An appeal against the order passed by the Assessing Officer u/s 143(3) read with section 148 can be filed by an aggrieved assessee before the:
(a) Addl. Commissioner of Income-tax.
(b) Commissioner of Income-tax.
(c) ITAT
(d) Commissioner of Income-tax (Appeals).
Answer:
(d) Commissioner of Income-tax (Appeals).

Question 34.
First appeal can be filed by:
(a) Department only
(b) Assessee only
(c) (a) or (b)
(d) None of the above.
Answer:
(b) Assessee only

Question 34A.
The requirement of granting the assessee a reasonable opportunity of being heard u/s 127(1) is in nature.
(a) Recommendatory
(b) Mandatory
(c) Discretionary
(d) Optional
Answer:
(b) Mandatory

Question 35.
An appeal from the order of ITAT lies before the High Court and the same is to be filed within the period of days from the date on which the order appealed against is received by the assessee or the CIT.
(a) 60
(b) 90
(c) 120
(d) 180
Answer:
(c) 120

Question 36.
The assessee who is not satisfied with the orders of Assessing Officer can:
(a) Prefer an appeal to Commissioner (Appeals)
(b) Apply to the Commissioner for revision u/s 264
(c) Apply directly to the High Court on question of law
(d) Both (a) or (b)
Answer:
(d) Both (a) or (b)

Question 37.
The appealable orders before Commissioner (Appeals) u/s 246A are
(a) Orders of assessment, reassessment or recomputation u/s 147
(b) Order passed in pursuance of directions of dispute resolution panel or section 150
(c) Order passed by Commissioner u/s 263
(d) When an appeal is preferred, that assessee is not liable to deduct tax and he has not deducted or deposited the tax.
Answer:
(a) Orders of assessment, reassessment or recomputation u/s 147

Question 38.
The appeal should be made to the Commissioner (Appeals) in the prescribed form and verified in the prescribed manner, together with a fees of when the assessed income is more than two hundred thousand rupees:
(a) ₹ 250
(b) 1500
(c) ₹ 750
(d) ₹ 1,000
Answer:
(d) ₹ 1,000

Question 39.
Where an appeal lies before Com missioner (Appeals) and it relates to any assessment or penalty order, the appeals have to be presented within days of the date of service of the notice of demand.
(a) 20 days
(b) 30 days
(c) 45 days
(d) 60 days
Answer:
(b) 30 days

Question 40.
Income Tax Appellate Tribunal as per section 254(2A) may hear and decide any appeal within a period of:
(a) 1 year from the end of the financial year in which appeal is filed.
(b) 2 years from the end of the financial year in which appeal is filed.
(c) 3 years from the end of the financial year in which appeal is filed.
(d) 4 years from the end of the financial year in which appeal is filed.
Answer:
(d) 4 years from the end of the financial year in which appeal is filed.

Question 41.
Income Tax Appellate Tribunal cannot grant stay either under the original order or any other subsequent order in aggregate beyond the period of :
(a) 180 days
(b) 365 days
(c) 90 days
(d) 240 days
Answer:
(b) 365 days

Question 42.
The respondent is having rights to file Memorandum of cross Objections before the ITAT after receipt of the Memorandum of Appeal filed by the appellant. Such Memorandum of Cross Objections is to be filed by the respondent within a period of:
(a) 45 days
(b) 60 days
(c) 30 days
(d) 15 days
Answer:
(c) 30 days

Question 43.
A tax payer wants to prefer an appeal against the order of the Assessing Officer. He received the order dated 30th April, 2019 on 5th May, 2019. He must prefer an appeal before the CIT (Appeals) under section 246A of the Income-tax Act, 1961, within:
(a) 30 days from the date of the order
(b) 30 days from the date of receipt of the order by the assessee
(c) 60 days from the date of order.
(d) 60 days from the date of receipt of order by the assessee.
Answer:
(b) 30 days from the date of receipt of the order by the assessee

Question 44.
Appeals against the order of Appellate Tribunal (ITAT) can he filed in High Court within………….. days.
(a) 30 days from the date of the order
(b) 60 days from the date of receipt of the order by the assessee
(c) 120 days from the date of receipt of order by the assessee
(d) 180 days from the date of the order.
Answer:
(c) 120 days from the date of receipt of order by the assessee

Question 45.
Deputy Commissioner (Appeals) is an authority ……….. to Commissioner for the purposes of section 264.
(a) At par in rank
(b) Superior in rank
(c) Subordinate in rank
(d) Not comparable.
Answer:
(c) Subordinate in rank

Question 46.
The following orders are appealable before the Appellate Tribunal except:
(a) The orders passed by Commissioner (Appeals).
(b) Revision orders passed by Commissioner u/s 263
(c) Revision orders passed by Commissioner u/s 264
(d) An order passed by an Assessing Officer with the approval of the Commissioner.
Answer:
(c) Revision orders passed by Commissioner u/s 264

Question 47.
An order passed by the Commissioner (Appeals) should be communicated to:
(a) Assessee
(b) Commissioner who has jurisdiction over the case.
(c) Both the assessee and the CIT.
(d) The assessee through CIT.
Answer:
(c) Both the assessee and the CIT.

Question 48.
The order passed by the Assessing Of-ficer when challenged before the Commissioner (Appeals) under section 246A, the memorandum of appeal should be filed in:
(a) Form No. 35
(b) Form No. 36
(c) Form No. 36A
(d) Form No. 38
Answer:
(a) Form No. 35

Question 49.
The fees for filing an appeal to the Appellate tribunal is where the assessed income or loss sought to be appealed is more than one hundred thousand rupees but nor more than two hundred thousand rupees.
(a) ₹ 500
(b) ₹ 1,000
(c) ₹ 1,500
(d) 1% of assessed income or loss.
Answer:
(c) ₹ 1,500

Question 50.
An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal if:
(a) It is a substantial question of fact.
(b) It is a substantial question of law.
(c) If the income/loss exceeds ₹ five hundred thousand or more.
(d) None of the above.
Answer:
(b) It is a substantial question of law.

Question 51.
The time limit for filing appeal to the High Court is ………. days of receipt of order of ITAT.
(a) 30 days
(b) 45 days
(c) 90 days
(d) 120 days
Answer:
(d) 120 days

Question 52.
The order of the High Court may be appealed before Supreme Court. Choose the correct option:
(a) The Appeal can be made by the de-partment only and not the assessee.
(b) The Appeal should be filed within 120 days of the receipt of the order of the High Court.
(c) The Form 35 is used to file the appeal.
(d) The Form of appeal shall be as per Code of Civil Procedure, 1908.
Answer:
(d) The Form of appeal shall be as per Code of Civil Procedure, 1908.

Question 53.
The Principal Commissioner of Income-tax is empowered to revise the assessment order of the Assessing Officer when the same is found to be erroneous and pre-judicial to the interest of Revenue. Such power is vested in the Principal Com-missioner of Income tax u/s :
(a) 263
(b) 246C
(c) 264
(d) Both 263 and 264
Answer:
(a) 263

Question 54.
The rationale behind power of revision of orders prejudicial to the interest of revenue conferred on the Commissioner of Income-tax under section 263 of Income Tax, Act, 1961 is that:
(a) the order passed is without inquiries or verification which should have been made
(b) the order is passed allowing any relief without inquiring into the claim
(c) the department has no right of appeal to the Commissioner (Appeals) against any order passed by the Assessing Officer
(d) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119
Answer:
(c) the department has no right of appeal to the Commissioner (Appeals) against any order passed by the Assessing Officer

Question 55.
The Commissioner of Income Tax can call for the records of an assessee and by virtue of powers conferred under the Act can make the revision of the order passed by the Assessing Officer after giving an opportunity of being heard to the assessee. Such powers can be invoked by the CIT, when:
(a) The order is erroneous
(b) The order is prej udicial to the interest of revenue
(c) When the return has not been filed by the assessee
(d) When both the conditions of (A) and (B) exist.
Answer:
(d) When both the conditions of (A) and (B) exist.

Question 56.
The Commissioner may pass revision orders u/s 263, if the order of the Assessing Officer is prejudicial to the interest of revenue:
(a) On an application by the assessee.
(b) On an application by the Com-missioner appeals
(c) Suo-Motu ie by himself
(d) None of the above
Answer:
(c) Suo-Motu ie by himself

Question 57.
Where the Commissioner passes a revision order u/s 263, the taxpayer may appeal against the said order to:
(a) Commissioner (Appeals)
(b) Income-tax Appellate Tribunal (ITAT)
(c) High Court
(d) Supreme Court
Answer:
(b) Income-tax Appellate Tribunal (ITAT)

Question 58.
The time limit for revision of order by the Commissioner u/s 263 is:
(a) Within one year from the end of the financial year in which order sought to be revised was made.
(b) Within 18 months from the end of the financial year in which order sought to be revised was made.
(c) Within two year from the end of the financial year in which order sought to be revised was made.
(d) Within 36 months from the end of the financial year in which order sought to be revised was made.
Answer:
(c) Within two year from the end of the financial year in which order sought to be revised was made.

Question 59.
Choose the correct option. The revision order u/s 263 can be passed by the Com-missioner when:
(i) The order of Assessing Officer is erroneous.
(it) The order is prejudicial to the interest of revenue
(iii) Opportunity is given to the assessee of being heard
(iv) It involves a question of law only
(v) It involves a question of fact
(a) (i), (ii) & (v)
(b) (i), (ii), (iii) & (v)
(c) (i), (ii) & (iii)
(d) (i), (ii), (iii) & (iv)
Answer:
(c) (i), (ii) & (iii)

Question 60.
The Commissioner cannot revise order if:
(a) The order is appealable to the Commissioner (Appeals), until the time within which appeal may be made expires.
(b) When an appeal is pending
(c) When the Commissioner (Appeals) refuses to entertain an appeal on the ground that it is time-barred.
(d) Both (a) or (b).
Answer:
(d) Both (a) or (b).

Question 61.
An Appeal against the Revision orders passed by the Commissioner u/s 263 can be filed before
(a) Commissioner (Appeals)
(b) ITAT
(c) High Court
(d) None of the above.
Answer:
(b) ITAT

Question 62.
Revision order of the Commissioner of Income tax passed under section 264 of the Income-tax Act, 1961 can be challenged by the assessee by filing appeal to:
(a) ITAT
(b) High Court
(c) Commissioner (Appeals)
(d) Dispute Resolution Penal (DRP)
Answer:
(d) Dispute Resolution Penal (DRP)

Question 63.
The Assessing Officer, while scrutinizing the return of an assessee, finds under-reporting of income for the reason of misreporting of facts of such income. He can levy penalty on such under-reported income resulting from misreporting of income upto …………..of tax payable on such under-reported or misreported income.
(a) 5096
(b) 10096
(c) 20096
(d) 30096
Answer:
(c) 20096

Question 64.
The maximum penalty leviable for under reporting of income which results from misreporting of income by the assessee is:
(a) Two hundred per cent of the tax payable
(b) One hundred per cent of the tax payable
(c) Fifty per cent of the tax payable
(d) Three hundred per cent of the tax payable
Answer:
(a) Two hundred per cent of the tax payable

Question 65.
Kadam sold a vacant land for ₹ 15 lakh on 20th March, 2019. The indexed cost of acquisition of land is ₹ 12,00,000. He received ₹ 3 lakhs being part of the sales consideration in cash and the balance through Electronic Clearing System (ECS). The AO can levy penalty in such case on Kadam of an amount of:
(a) ₹ 12,00,000
(b) Nil
(c) ₹ 15,00,000
(d) 13,00,000
Answer:
(d) 13,00,000

Question 66.
Maximum amount of penalty for failure to get accounts audited required as per section 44AB of the Act from an accountant is:
(a) ₹ 1,50,000
(b) ₹ 1,00,000
(c) ₹ 50,000
(d) 1/296 of turnover or gross receipts of the business or profession or ₹ 50,000.
Answer:
(a) ₹ 1,50,000

Question 67.
Padmaja Traders a partnership firm with turnover of ₹ 140 lakhs omitted to get the books of account audited under section 44AB. The minimum amount of penalty leviable for failure to get the accounts audited under section 44AB is:
(a) ₹ 10,000
(b) ₹ 70,000
(c) ₹ 1,50,000
(d) ₹ 20,000
Answer:
(b) ₹ 70,000

Question 68.
Penalty for failure to collect tax at source as a percentage of tax to be col-lected is:
(a) 25%
(b) 100%
(c) 75%
(d) 50%
Answer:
(b) 100%

Question 69.
Penalty for failure to submit report under section 92E is:
(a) ₹ 25,000
(b) 2% of the value of international transactions
(c) ₹ 1,00,000
(d) ₹ 1,50,000
Answer:
(c) ₹ 1,00,000

Question 70.
When an assessee fails to furnish any information relating to a specified domestic transaction the quantum of penalty as a percentage of value of the transaction would be:
(a) 2%
(b) 1%
(c) 5%
(d) 3%
Answer:
(a) 2%

Question 71.
As per section 271 A, failure to keep, maintain or retain books of account would attract penalty of:
(a) ₹ 10,000
(b) ₹ 1,00,000
(c) ₹ 2000
(d) ₹ 25,000
Answer:
(d) ₹ 25,000

Question 71 A.
If during any proceeding under this Act, it is found that in the books of account maintained by any person there is a false entry or an omission of any entry which is relevant for computation of total income of such person, to evade tax liability, the Assessing Officer may direct that such person shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry u/s:
(a) 271A
(b) 271AA
(c) 271AAC
(d) 271AAD
Answer:
(d) 271AAD

Question 72.
The amount specified in notice of demand must be paid within days otherwise the assessee would be treated as assess in default.
(a) 10
(b) 15
(c) 30
(d) 60
Answer:
(c) 30

Question 73.
Mr. Rajat did not appear before the Assessing Officer in response to a notice issued under section 143(2). He repeatedly absented from appearing before the Assessing Officer. How much could be the quantum of penalty the Assessing Officer could levy on Mr. Rajat for the failure.
(a) ₹ 2,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) ₹ 20,000
Answer:
(c) ₹ 10,000

Question 74.
The Assessing Officer while scrutinizing the return of an assessee find under reporting of income for the reason of misreporting of facts of such income and thus levied penalty on such under reported income resulting from misreporting of income. The penalty to be imposed by the A.O. shall be at the rate of tax payable on such misreported income.
(a) 50%
(b) 100%
(c) 200%
(d) 300%
Answer:
(c) 200%

Question 75.
As per section 9A, an eligible off-shore investment fund shall furnish within 90 days from the end of the financial year, a statement containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed. Penalty of to be levied,if investment fund failed to comply with the requirements as per section 271FAB.
(a) ₹ 1,00,000
(b) ₹ 500 per day
(c) ₹ 5,00,000
(d) ₹ 10,00,000
Answer:
(c) ₹ 5,00,000