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.4.
.o. 324
Nafe,. All references to soctions me&tianed in Part-A af the q*eslion paper relate ta the
Incowe-tr*r Act, 1961 atd relevant Assessment Year 2015 - 16 unless stated otherwise"

PART-A
l. Rajiv (aged 28 years) received cash gift of 5. X Ltd. paid T l0 lakh to an approvpd college
{2 lakh on the occasion of his marriage. It to be used for scientific rssearch unrelated
includes gifi fir:m non-relative of {80,000. to its business. The smount eligible for
His income by way of lottery winnings is deduction under section 35(1i(ii) is
?3 lakh" His net incomc tax liability (A) t5 lakh -
(ignoring TDS) would be
- (B) <10 lakh
{A}'"q9?i?00
(B) <22.660 - (C)'r {irY'SS'1la}*1
(c) T12,360 (D) Nil..,

in
(D) (25,75i).
2. Pawan reports net income ol t5 laktr tioni 6' Saraswath Ltd. rnade provision of T1? lakh

e.
the activity of growing and manufacturing for bonus payable for the year ended
rubber. How much of such income is to be 3l't March, 2015. It paid t7 lakh on
dg
treated as non-agricultural income 3l'tJuly, 2015: T3 lakh on 30e September,
{Ai ,:;{1';75i0SS - ?015; and {2lakh on l5e December, 2015"
(B) {2,00,000 -" The amount eligible for deduction under
(ci *
le
{!,25,000 section 438 would be
(D) Nil,- " ,
(A) Tl0 lakh
3.
w

Covt. of India"paid salary of {5 lakh and (B) {12 laktr

allowances/perquisites valued at t2.20 lakh (C) ?7 lakh *
no

ts a person who is citizen of India fcr the (D) t3 !akh.

services rendered by him outside India for
5 months during the previous year. His totai
incon, charyeable to tax would be * 7' Laxmi & Co. paid (6,10,000 as corffact
Ak

payments to Monu Ltd. during the financial

tA) ?7,20,000 year 2014-15. It did not deduct tax at source
{8i..{5,00iooo -,
(c) T6,10,000 under section 194C" The.amount liable for
C

(D) Nir. disallowance is

(A) <6,10,000 -
4. Sunil acquired a building for t15 lakh in
June, 2012 in addition to sost of land (B) {3,05.000'
r
beneath the building of t3 lakh. It was (c) T12,200
rsed for personal purpCIscs until he (D) <1,83,000.
commenced business in June, 2014 and
since then it was used for business purposes. s
The maximum penalty leviirble for failure
The amount of depreciation eligible in
to get accounts audited or to furnish report
.his case for the assessrnelt year 201.5-16 under section 44AB is *
" (A)
would be
- (A) t75,000
T1,50,000
{B) {75,000 (B) {1,00,000 -'
(c) {37,500 (c) {1,50,000
(D) {1Jt,500.- (Di {3,00,000.
zl,Jal,stTL? P.N).
2a1 12\
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as the Most Authenticated Answers. Still neither CAknowledge.in nor CA Vivek Goel shall be responsible for
the result of any action taken on the basis of information provided in this
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324 :4:
13. When a person carries on the buliness
9. When an LLP has book profit of {6 lakh,
the maxirnum amount allowable towards the
of carrying goods for hirs for the whole
* ydar with 5 self-owned and 3 leasehold
salary of working partners would be
heavy goods vehicles, the presumptive
{A},",,t4;$0;$*S income chargeable to tax under section
(B) T6,00,0CI0 44AE would be. *
(c) , (A) {4,80,000 {-
?3,00,000
91,:r,*?;?Sf0il$,
(D) Nil. (c) (3,96,00CI
(D) {3,36,000.
10. When a cash payment of (30,000 is made
xl4. The tax on the income of non-resident can
on IOe May, 2014 towards purchase of raw be/may be recovered :
material effected in the earlier year, i.e., on (l) By deduction of tax at source
5th June, 2A12, the amount liable for (2) From his associates

in
disallorvance under sec{io* 40A(3A) (3) .From his agents
u'ould be Select lhe correct answer from the options
-

e.
given below
(A) Nil *r' (A) (l) r:nly--
(B) 100% of payment (B) (l)&(2)ory
dg
{C) 209* of such payment
(c) (r), (2) & (3)
(D) 30Vo of such payment.
iD) None of the above.
f5.
le
When sharesof a listed company held for
11. An order passed by the Commissioner more than 36 months are transferred
w

privately far {8 lakh, with original cost of

(Appeals) should be communicated to
- acquisition of ?l lakh whose indexeti cost
(A) of acquisition is ?2 lakh, the income-tax
no

Assessee
(B) C.I.T" who has jurisdiction over the payable would be
CASC
(A) <t,44,200 -', -
(B) t72,100
Ak

(C) Both the assessee and C.I.T. * (c) {1,23,600

(D) The assessee through C.I.T. (D) {61,800.
C

16. Aman entered into an agrsement with Brij

t2. When a partnership firm has total sales of for sale of a building for {20 lakh in June,
?90 l.kh, the maximum amount deductible ?014. Aman received advance of {2 lakh.
as salary of working partners on the basis Subsequently. the agreement was cancelled
of presurnptive income deterrnined under and Amur forfeitsd the aelvance money. The.
advance money is
section 44AD is - from the cost of
(Ai {4,92,000 -- (4) To be reduced
acquisition
(B) {3,60,000 (B) To be reduced from indexed cost of
'
(c) T3,3o,0oo
(C)
acquisition
.Taxable as capital gains
(D) {5,22,000.
tV,l:t,':,::,,,;fr679e,.,!x,.'.llli;;**t.under,thehead
liixconre from',,t*'fui ssai'ic*'.

21201'|TLP Contd..
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:5:
.tt
324
17. Ramesh received ?7 lakh by way of A partnership firm with 4 equal partners
enhanced compensation in March, 2015. brought forward depreciation of T3 lakh and
A further sum of t2 lakh decreed by the business loss of {3 lakh relating to
court is due but not received till 31't Malch, assessment year 2Al4-15. On lst April,
2015. The amount of income chargeable 2014, two partners retired. The amount
to tax for the assessment yrar 2015-16 that assessee-firm can set-off against its
wouid be ._ income for the assessment year 2015-16
(A) {3,50,000 would be
-
(B) T7,00,000 (4) Unabsorbed depreciation of t3 lakh
p/us brought forward business loss of
(9) t9,oo,ooo (3 lakh
(D) {4,50,000 (B) Unabsorbed depreciation 'nil' p/ns
brought forward business loss T3 lakh
It. lf a person is eligible to claim : (C) Unabsorbed depreciation t3 lakh p/us

in
(1) unabsorbed depreciation brought forward business loss 'nil',
(Z) currsnt scientific research expenditure (D) Unabsorbed depreciation T3 lakh plus

e.
(3) current depreciation brought forward business lbss of
(1.50 laktL
(4) brought forward business loss
dg
11 Double taxation relief for incomes taxed in
The order of priority to set-off would be
(A) (4), (3), (2) & (l) - the countries with which no agredment exists
le
is govemed by
i8}t:.ill,(ii;,:(3);'{4) & (1 )
{$)_.,Secti$$St'
-
(g) (3), (4), (r) & (2) (F) Sedion 89
w

(D) (1), (2), (3) & (4). (C) Section 93

(D) None of the above.
no

19. A legal entity that exists in one jurisdiction

23. A limited company declared (20 lakh as
but is owned or controlled primarily by
dividend on its paid-up capital of tl00lakh.
Ak

taxpeyers of different jurisdiction is

The dividend distribution tax payable by it
called
- would be *
(A) Collaborative foreign corporation (A) {3 lakh
C

q) Conrotled foreign corporation (B) (:.3: tattr

(C) Customised future company (C) t4.09 lakh
(D) Co-operative control society. (D) t6.18 lakh.
124, Steam (P) Ltd. reports total income of (20
24. Monetary limit for deduction in respect of Iakh for the year ended 3lst March, 2015,
royalty on patents received by a resident The total tax liability payable before
individual is i.Sq $*Wemb,er, 2014 by way of advance
(A) (1,00,000 - tax is
(B) (3,oo,ooo -
iA). ,{9ii7s0
(c) {5,00,000
(8) {2,78,100
p) Nil'
(c) {1,85,400
(D) T3,09,600.

u2a15fiLP P.T.O.
I
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324 :6:
X, Manager of XYZ Ltd. since 2001 rvas
25. Interest for deferment in payment of 130.

advance tax under section 234C is term-inated by rhe company on lst August;
calculated on the tax liability computed 2Al4 b,y paying a GompensatiPn of
on- T200 lakh. Such compensation is
(A) Chargeable under the Wealth-tax
-
(A) Assessed income
t6l Returnsd irrcorne Act, 1957
tC) Disputed incame (B) Not chargeable under the lrcome-tax
(D) Appealed income. Act, 1961
(C) Chargeable under section l7(3Xi)
26. The 'due date' specified under section 139( l) {D) Chargeable under section Z8(iiXa).
for filing the return of ineome in case of
companies engaged in iilternational 31. HSK, an LLP had taken keyman insurance
transactions and who have to furnish a pclicy ern the life of its rnanaging partner.
report under section 92E is -- The policy got matured on 13d' September,

in
(A) 3l'r Juty 2014 and an arnount of t75 lakh was paid
(B) 3lst August by the insurers to the managing partner.

e.
(C) 30* September The amount so received on maturity of the
(D) 306 November. policy by the managing partner is
-
dg
(A) Fully exempt under seclion l0{l0D)
aFl
Authority fcr Advance Rulings shall not (B) 507o of t?5 lakh exempt
allow an application where the question {Q Y75,,,,lAkh,tt*xabte
le
raised
- (D) (?5 lakh exempt and T50 lakh
(A) Is already pending before the Supreme taxable.
w

Court
tB) Involves determination of fair market t, Ramji Charilabls Tru.st had sold a capital
asset costing T70,000 on l3e June, 2014'
no

value of any prCIpe ty

(C) Relates to 3 transaction designed for (1,50,000. It purchased new assets on
prima facie tar the avoidance of lst July, 2014 for {1,20,000. The amount
Ak

income tax taxable as capital gains for Ramji Charitable

(P) AII of the above. Trust in assessrnent year 2015-16 is
-
(A) (80.000
28. A return of income when notified as (B) Nil, because of charitable trusl
C

defective, has to be lectified within * (c) ?30,00t)

(S) 30 Days (D) t40.000.
(B) The financial year
'W, 15 "t?,aYx 11 Pankaj joins service on lsrApril, 2010 in
(D) 60 Days. of 15,000-( 1,000)' I 8,000-(2,000)-
the grade
26,Q00. He shall be paying tax for the
,o Fenalry for failure to file return of income ycar ended on 31sr March, 2015 on rhe total
before the end of the relevant assesslnent salary of
year is -
(41 {2,l6,ooo
-
(A) {1,000 q31i'r':',t?$;S*0
(E) {10,000 (c) {2.28,000
$r'ii,,,,{$;$& tD) {1,80,00s.
{D) <2,000.

92015/TLP Contd....
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:7: 3?{
34. Rarnesh let-out his house on 1't April, 2014 38. Raghu's father is dependent on him and
on rent of t15,000 p"m. The tair rent and suffering with 9O% disability. Raghu has
the municipal value of house are TI3,500 incurresl an amount cf t7?,500 in
p-m. and T16,000 p"m. respectively. rnaintaining and medical treatment of his
Municipal taxes paid for the year were tather. The deduction he can claim in his
T12,000. Income from house property "for income-tax return f"or assessment year
the assessment ycar 2015-16 will bc 2015-16 is *
{*}i':':'f};rZ6;000 ^**
- (s) {72,500
r :-'
(B) tr1,76,000 (B) T50,000
(c) {1,05,000 {C] Tl;00,roo
lp- None af the above. (D) None of the aborc.

35, Ms. Sitam is in receipt of family pension 39, From tax point of view, a limited liability
of {15,000 p.m. during 2A14-15. Income partnership (LLP) is treated as
" ehargeable ta tax for assessment year -

in
(A) Scle trader concerfl
2015-15 of Ms. Sitara is (B) peneral partnership firm
(A) {1,80,000 -

e.
(C) Private limited company
(B) <t,20,000 (D) Public limited company.
(c) t1,65,000
dg
(D) Nil. 40. Where a foreign institutional investor
36. Rohit (a Chartered Accountant) is working received income in respect of securities
other than income by way of dividend
le
as Accounts Officer in Raj (P) Ltd. on a
salary of {20,000 p.m. He got married to referred to in section I l5'O or received in
respect of securitie$ olhff than units referred
w

Ms. Pooja who holds 257o shares of this

company. Wlat will be &e impact of srlary to in section ll5AB, such incorne is
no

paid to Rohit by the company in the hands taxable @

of Ms. Pooja (A) lSo/a -
(A) -
l00o/o salary to be clubbed (B) l09a
(9 20qa
Ak

(B) 50% salary to be clubbed

(C) No amount be clubbed (D) 300/o.
(p) 25Va salary be clubbed.
41. Income of nr:n-resident when attributed
C

37. An individual has made investnents in from operations in lndia relating to the .

the schemes approvcd under section 80C, following is taxable in India :

and 80CCD of T2,50,000 and ?1,00,000 (1) Profits of business
respectively during the year ended 3lst (2) Fce for technical services
March, 2015. Amount that can be claimed (3) Royalty
by him as deduction out of income in (4) Income from house property in India
assessment year 2015-16 is Select the correct answer from the option$
(A) 5AVo af {3,50,000 - given below
(B) ?1,50,000 under $ection 80C and (A) (l) and- (4)
{1,00,000 under section 80CCD (B) (1), (3) and (4)
(9) (l,5o,ooo (C) (l) and (3)
(D) None of the above. q) ii:i' .{ii,.',(3).artii'{4}',
azusnLP P.T"0.
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924 :8:
42. The irrcome of non-lcsident from the business 46. The order passed by the Assessing Officer
of operation of aircraft in respect of carrying when challenged before the Commissioner
of cargo or passenger in India shall be (Appeals) under section 246A, memo-
taxable as per section 44BBA @ randum of appeal should be filed in
- -
.{A).::5%r)*fl:i.:the .,aniqqnt receivedl {A} : g5
i$q1 r. (B) Form No. 36
(B) llVo of the arn0unt received/ (C) Form No. 36,{
receivable
(c) l5% of the arnount received/ (D) Form No. 38.
receivable
(D) 7.5Ya of the amount received/ 17, Quoting of PAN is mandatory when a
receivable. per$on is entering into following
transactions :

in
43. The person responsible for paying any (l) Sale of immovable property CIf ?5
income by way of winning* from lottery an lakh or more

e.
amount exceeding {10,000, shall deduct
- (?) Deposit of {50,000 or more in Post
rfif ,lIDs.ggS?& Office Savings Bank
dg
(B) TDS @30.9% (3) Deposit of cash aggregating {40,000
(C) TDS @107o in one day in a bank
(D) No TDS. (4)
le
Contract of sale and purchase of
securities exceeding tl lakh
w

44, An assessee is required to make payment Select the conect answer from the options
of interest where he failed to make the given below
(A) (l), (2)- and (3)
no

paymen[ of demand before the expiry of

30 days from the service of notice of
demand @ * #),,,{l };, {?}.,.'*9 ","{4}
(C) (l), (3) and (4)
Ak

,tAl .l%.'f*r weqy rmonth,,m:,gartrllheieof

till the date of payment (D) (l), (2), (3) and {4).
(B) ZVo p.m, till the date of payment
C

(C) 1.57o p.m. till the date of payrnenr 48. XYZ Ltd. filed its return of income for the
(D) 1.25% for every month or parr thereof assessment year 2014-15 on lst February,
till the date of payment. 2015. The return was selected for scrutiny
assessment under section 143(3). The
45, The prernises of an assessee within the Assessing Officer is required to $erve upon
jurisdiction of an Assessing Officer can be the xsessee a notice under section 143(2)
surveyed by such Income-tax Authority * upto
(A)
-
(A) After sun-set and before sunrise 3l6t July, 2015
1'.-,,Anrt su,ryi**. bnt,
, .iftpl sx6;set qplt;,r,rl0$,Septe ,.,sfs
(C) Any time during 24 hours (C) 3lst July, 2016
(D) After ll AM" (D) 30ft September, 2016.

a^u$lTLp Contd....
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The Commissioner of Income-tax is

:9: 324
49. 53" XYZ has sold a machine to ABC (associate
empoweled to revise the assessment order enterprise) for ?3 lakh which was sold by
of the Assessing Officer when the same is ABC to PQR, an unrelated parly, on the
erroneous and pre-judicial to the interest of sale margin af 3AVo for (5,00,000 and has
revenue. Such power is vested in the also incurred an amount of {10,000 in
Commissioner of Income-tax under * sending the machine to PQR. 'Ihe arm's
r y:1r,
$g!ri0{I1,r,263 length price of this transaction will be*
(B) Section 246C ,,,{3.,ari.S00
(C) Section 264 {41'
(D) Sections 263 and 264. (B) T3,50.000-
50. Tax planning is honest and right approach
(c) {3,00,000
to attain the maximum benefit of taxation fD) {5,00,000.
laws within its ftamework only. Objectives
of tax planning are : 54. ABC Ltd. entered into international

in
(l) R'oductive investment transactions with AIlen Inc. of USA
(2) Un-healthy growth of economy during the year ended on 3l't h{arch, 2015

e.
'
(3) Minimisation of litigation totalling f 1,000 lakh, bur failed ro
(4) Increase in tax liability keep and maintain the information and
dg
Select the correct answer from the options
documents in respect of such international
given below
(A) (l), (2) -and (3) transections, The Assessing Officer can levy
a penalty on ABC Ltd. for this default under
(*), {$ and,,{.3}
le

(C) (1), (2) and (4) section 27lAA upto

(A) t10,00,000 -
(D) (l), (2), (3) and (a).
w

51. The provisions of transfer pricing are

(B) {20,00,000
(c)
no

applicable with effect from Isi April, 2012 {50,00,000

to specified domestic transactions entered (D) {1,50,000.
into by the assessee in the previous year in
Ak

aggregate of s5. The advance ruling pronounced by the

-
(A) t300 lakh Authority forAdvance Ruling as per section
(B) t500 lakh 245 is binding :
(C) t2,000 lakh
C

(D) ?1,ffi0 lakh. (l) In respect of transaction for which

ruling has been sought
52, A partnership firm having 9 trucks engaged
in the business of plying these trucks on {7) On incoms-tax authorities
hire is to file its return of income for the
(3) On the applicant
assessment year 2015-16 on the basis of (4) On all other persons having similar
provisions of section 44A8. transaction.
firm is required to file ic return of irrcome Select the corect answer from the options
tn_ given below
(A) Form ITR*4 (A) (l), (2) -and (3)
(B) Form ITR-3 (B) (l) and (3) .
(C) Form ITR-2
(D) Form ITR-4S.
(C) (2) and (3)
(D) (1), (2), (3) and (a).
?Jac/.5fiLP P.T.O.
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324 : 10:
56. A private limited company engaged in 59. Residential status of an Indian company
manufacturing activity had general re$erve is resident and ordinarily resident for the
of t20 lakh. It granted a loan of {5 lakh to year
a director who held l3olc shareholding crrnr -
(A) If the entire control and management
voting rights in the company. The said loan 'F is wholly in India
was re-paid by him before the end of the
year. The amount of deemed dividend (B) If part of the control and managernent
arising out of the atrove transaction is is in India
-
$) T2,60,000 {C.} eegardrc$s:$,the place of control ald
(B) {2,40,000 mm*gc&&nt
$1 rs;0oso {D) If it is listed sn recognised stock
(D) Nil. exchange.

in
e.
51, A residential house is sold for {90 lakh 60" A new business was set-up on l$ July, 2014
and the long-tem capital gains computed and rading activity was commenced from
dg
are ?50 lakh. The assessee bought two lst Septemtrer, 2A14, the previous year
residential houses for {30 lakh and T20 would be the period commencing from
lakh respectively. The amount eligible for
-
exemption under section 54 would be *
(4) I'r April, 2014 to 3lst March, 2015
le

(+) t50 lakh (B) ls July, 2014 to 3lst MmclL ?015

w

(B) T20 lakh (C) Ist S*ptemher, 2Al4 to 3lst March,

20 t5
no

(C) ?30 lakh

(D) I
st
October, 2014 to 3 I st March, 20 I 5.
(D) Nil.
Ak

61, HUF cf Ashwin consisting of himself, his

58. Kapil gets salary of {12,000 p.m. and is wife and 2 sans is assessed to income-tax.
provided rvith rent-free unfurnished
C

The residential status of HUF would be non-

accommodation at Pune (population
resident, when
20 lakh). House is owned by cmployer, -
fair rental value of which is ?1,400 p.m. (A) The management and control of its
House was provided with effect from affairs is wholly in India
lst July, 2014. Vhlue of the perquisite of ,','
rent-free accofimodaticn will be
.(81r.,.,,,1[ki*.*ti i d,,,cQ*&.&[;of its
- affairs is wholly outside India
(4) <2l,600
(q) The status of karta is non-resident for
Sl {}s,s0CI that year
(c) <16.200 (D) When majority of the members are
(D) t12,600. non-residents.

?J2015ff1f Conld..,"
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924
62. Ram who was born and brougtrt uP in 67. 1&rtren a houseproperty is let-out throughout
India left for employtnent in Dubai on the year for a mr:nthly rent of {22,000 and
20e August, 2014. His rcsidential status in municipal tax paid for current year is
respect of the assessmert year 2015-16 ?24,000 and for the earlier year paid now
would be is T16,000, the income from house propefiy
- and ordinarily resident
(A) Resident would be
$) ,X *s.i&nt -
(A) {1,68,000
(C) Not ordinarily resident
(D) .(&,':,tl;5$,*0o ? 1-"'
None of the above.
63. A charitable trust acquired two air-ccnditioners (c) {t,84,800
for T1,40,ffi0 on 10e June, 2014. It clairned (D) {2,24,000.
the acquisition as application of income.
The amcunt it can claim bY waY of
depreciation for ihe said air-conditioners for '68. When share of etch co-owner in a house
*

in
the assessment Year 2015-16 is property is not definite, the income fiom
(A) E2r,00o . such property shall be
-
(B) (+) Taxed equatlY

e.
{1,40,000 "-
(c) {35,000 (B) Exempt from tax
{Q',Nit.
dg
(C) Taxed as associatimr of persons
64. The voluntary contributions teceived by an
electoral trust during the year is not included
(D) Taxed as body of individuals.
in its income
le

(A) When 85Yo - of

contribution is 69. Rohan relires from private service on
distributed in the year 30e April, 2014 and his pension han been
w

{&, &',':',',: *r |.,,*on*ib,ution .: is

Ifffu66':"'95
fixed at {1,500 p.m. He gets 112 of his
disnibuted in the year
pension commuted duning January, 2015
no

(c) To the extent of Tl0 lakh -

and receives t?5,000. He also gets {60,000
(D) To the extent of 5A7o af contribution
or Tl00 lakh whichever is less. as gratuity. The total pension laxable
including cornmuted value will be *
Ak

65. Alternate minimum tax under section I l5JC (A) (t6,500

is not applicable to
{$,r,,ComganV
- (B) {41,500-
(c)
C

(B) Individual t39,250

(C) Partnership finn (D) {14,?50.
(D) Association of persans.

66. Anil is employed in a company with annual

170, X M*rinc Lincs Inc., a Silgapore company
salary of t8,60,000 (comPuted). The engaged in shipping business collected
company paid inccme-tax of {37,000 on (150 lakh towards carying goods from
his non-monetary perquisites. He paid Chennai Port. Its presumplive income
{1,20,00CI to recognised provident fund
chargeable to tsx in India would be
during the year 2Al4-15. His total income -
would be (A) {15 lakh
-
$) {7,77,000 {8i, ,?I1.?5:.,} h
(B) T7.40,000
(C) (12 lakh
(c) ?7,97,000
(D) {?,60,000. (D) Nil.

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