📘 100 MCQs — Advanced Level
Topics: Assessment | Search & Seizure | Appeals & Revision | Settlement | Time Limits
🔹 Assessment Procedures
1.
Summary assessment under Section 143(1) involves:
A. Detailed scrutiny
B. Prima facie adjustments
C. Reassessment
D. Appeal
Answer: B
2.
Notice for scrutiny assessment is issued under:
A. 142(1)
B. 143(2)
C. 147
D. 263
Answer: B
3.
Time limit for issuing 143(2) notice:
A. 3 months
B. 6 months from end of FY
C. 12 months
D. No limit
Answer: B
4.
Best judgment assessment is under:
A. 144
B. 143
C. 147
D. 153
Answer: A
5.
Reassessment is initiated under:
A. 143
B. 147
C. 153
D. 263
Answer: B
6.
Income escaping assessment refers to:
A. Wrong return
B. Non-filing
C. Under-reporting
D. All
Answer: D
7.
Notice under Section 148 is for:
A. Assessment
B. Reassessment
C. Penalty
D. Refund
Answer: B
8.
Faceless assessment scheme aims to:
A. Increase litigation
B. Reduce corruption
C. Increase tax
D. Delay process
Answer: B
9.
Assessment order under scrutiny passed u/s:
A. 143(3)
B. 144
C. 147
D. 153
Answer: A
10.
Return can be revised under:
A. 139(5)
B. 143
C. 147
D. 263
Answer: A
🔹 Search & Seizure
11.
Search is conducted under:
A. 132
B. 133
C. 147
D. 263
Answer: A
12.
Survey is conducted under:
A. 132
B. 133A
C. 147
D. 153
Answer: B
13.
Seizure of assets requires:
A. Suspicion
B. Reason to believe
C. Approval
D. Both B & C
Answer: D
14.
Search authorization is issued by:
A. AO
B. CIT
C. Director/Commissioner
D. ITAT
Answer: C
15.
Block assessment applies to:
A. Normal cases
B. Search cases
C. Appeal cases
D. Refund cases
Answer: B
16.
Section 153A deals with:
A. Normal assessment
B. Search assessment
C. Penalty
D. Refund
Answer: B
17.
Assessment period under search covers:
A. 3 years
B. 6 years
C. 10 years
D. 15 years
Answer: B
18.
Books can be impounded under:
A. 132
B. 133A
C. 131
D. 147
Answer: B
19.
Statement recorded during search is under:
A. 131
B. 132(4)
C. 143
D. 147
Answer: B
20.
Presumption of ownership applies to:
A. Books found
B. Cash found
C. Assets found
D. All
Answer: D
🔹 Appeals & Revision
21.
First appeal lies with:
A. ITAT
B. CIT(A)
C. AO
D. High Court
Answer: B
22.
Time limit for filing appeal to CIT(A):
A. 15 days
B. 30 days
C. 60 days
D. 90 days
Answer: B
23.
Second appeal lies with:
A. High Court
B. ITAT
C. Supreme Court
D. AO
Answer: B
24.
Revision by CIT (prejudicial to revenue):
A. 263
B. 264
C. 147
D. 143
Answer: A
25.
Revision in favour of assessee:
A. 263
B. 264
C. 143
D. 147
Answer: B
26.
Appeal to High Court lies on:
A. Facts
B. Law
C. Both
D. None
Answer: B
27.
Time limit for appeal to ITAT:
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: B
28.
Order prejudicial to revenue means:
A. Loss of tax
B. Gain of tax
C. Neutral
D. Refund
Answer: A
29.
Revision u/s 263 can be made within:
A. 1 year
B. 2 years
C. 4 years
D. No limit
Answer: B
30.
CIT(A) can:
A. Enhance assessment
B. Reduce assessment
C. Confirm
D. All
Answer: D
🔹 Settlement Commission
31.
Settlement Commission is now replaced by:
A. ITAT
B. Interim Board
C. CBDT
D. AO
Answer: B
32.
Application for settlement requires:
A. Full disclosure
B. Partial disclosure
C. No disclosure
D. Estimated income
Answer: A
33.
Minimum additional tax payable required:
A. ₹5 lakh
B. ₹10 lakh
C. ₹25 lakh
D. ₹50 lakh
Answer: D
34.
Settlement order is:
A. Appealable
B. Final
C. Revisable
D. Temporary
Answer: B
35.
Settlement can be rejected if:
A. No disclosure
B. False disclosure
C. Non-cooperation
D. All
Answer: D
🔹 Time Limits
36.
Time limit for completion of assessment u/s 143(3):
A. 6 months
B. 9 months
C. 12 months
D. 24 months
Answer: C
37.
Time limit for reassessment:
A. 3 years
B. 6 years
C. 10 years
D. Depends
Answer: D
38.
Reopening beyond 3 years requires:
A. AO approval
B. Higher authority approval
C. Court order
D. Assessee consent
Answer: B
39.
Time limit for rectification u/s 154:
A. 2 years
B. 4 years
C. 6 years
D. 10 years
Answer: B
40.
Time limit for appeal to High Court:
A. 60 days
B. 90 days
C. 120 days
D. 180 days
Answer: C
41.
Assessment time extended in case of:
A. Stay
B. Audit
C. Transfer pricing
D. All
Answer: D
42.
Search assessment time limit is:
A. 6 months
B. 12 months
C. 18 months
D. 24 months
Answer: B
43.
Time limit for penalty order:
A. 6 months
B. 1 year
C. 2 years
D. Depends
Answer: D
44.
Rectification can be done for:
A. Mistake apparent
B. New issue
C. Appeal issue
D. All
Answer: A
45.
Limitation counted from:
A. Date of order
B. End of FY
C. Date of notice
D. Filing date
Answer: B
46.
Delay in appeal can be condoned if:
A. Valid reason
B. No reason
C. Late filing
D. Tax unpaid
Answer: A
47.
Assessment reopened based on:
A. Suspicion
B. Evidence
C. Reason to believe
D. Complaint
Answer: C
48.
Notice under 142(1) is for:
A. Inquiry
B. Penalty
C. Appeal
D. Refund
Answer: A
49.
Failure to comply with notice leads to:
A. Penalty
B. Best judgment
C. Prosecution
D. All
Answer: D
50.
Assessment proceedings conclude with:
A. Notice
B. Order
C. Appeal
D. Refund
Answer: B
🔹 Assessment Procedures (Advanced)
51.
If assessee fails to comply with notices under 142(1) and 143(2), AO shall:
A. Drop proceedings
B. Issue penalty
C. Make best judgment assessment
D. Refer to CIT
Answer: C
52.
Return processed under 143(1) can still be selected for scrutiny:
A. No
B. Yes
C. Only with approval
D. Only for companies
Answer: B
53.
Reassessment requires prior sanction under Section 151 from:
A. AO
B. CIT/PCIT
C. ITAT
D. CBDT
Answer: B
54.
If reassessment notice issued without “reason to believe”:
A. Valid
B. Void
C. Partially valid
D. Subject to appeal
Answer: B
55.
Income escaping assessment includes:
A. Excess loss allowed
B. Excess deduction
C. Under-assessed income
D. All
Answer: D
56.
Revised return can be filed before:
A. End of AY
B. Completion of assessment
C. Both
D. Only within 1 year
Answer: C
57.
Assessment proceedings are:
A. Judicial
B. Quasi-judicial
C. Administrative
D. Legislative
Answer: B
58.
Faceless assessment eliminates:
A. Human interface
B. Documentation
C. Notices
D. Appeals
Answer: A
59.
Burden of proof in assessment lies primarily on:
A. AO
B. Assessee
C. CIT
D. Tribunal
Answer: B
60.
Protective assessment is made when:
A. Income certain
B. Doubtful person liable
C. Tax evasion proved
D. Return not filed
Answer: B
🔹 Search & Seizure (Advanced)
61.
Search u/s 132 can be conducted when there is:
A. Suspicion
B. Complaint
C. Reason to believe undisclosed income exists
D. Anonymous tip
Answer: C
62.
During search, authorised officer can:
A. Break open locks
B. Seize documents
C. Examine persons on oath
D. All
Answer: D
63.
Retention of seized documents beyond 30 days requires approval of:
A. AO
B. CIT
C. ITAT
D. CBDT
Answer: B
64.
Presumption under Section 132(4A) applies to:
A. Ownership
B. Truth of contents
C. Signature authenticity
D. All
Answer: D
65.
Search assessment replaces:
A. Regular assessment
B. Reassessment
C. Both
D. Neither
Answer: C
66.
If no incriminating material found, addition in search assessment:
A. Allowed
B. Not allowed
C. Mandatory
D. Discretionary
Answer: B
67.
Survey cannot:
A. Inspect books
B. Record statement on oath
C. Verify cash
D. Enter business premises
Answer: B
68.
Statement during survey has:
A. High evidentiary value
B. No evidentiary value
C. Limited evidentiary value
D. Conclusive value
Answer: C
69.
Seized assets can be adjusted against:
A. Tax
B. Penalty
C. Interest
D. All
Answer: D
70.
Search authorization invalid if:
A. No approval
B. No jurisdiction
C. No reason to believe
D. All
Answer: D
🔹 Appeals & Revision (Advanced)
71.
CIT(A) can admit additional evidence if:
A. AO refused to admit
B. Assessee prevented by sufficient cause
C. Both
D. None
Answer: C
72.
Cross objection can be filed before:
A. CIT(A)
B. ITAT
C. High Court
D. AO
Answer: B
73.
ITAT order can be rectified under:
A. 254(2)
B. 154
C. 263
D. 147
Answer: A
74.
Appeal to Supreme Court lies on:
A. Fact
B. Law
C. Both
D. Only constitutional matters
Answer: B
75.
Revision u/s 263 cannot be done if order is:
A. Erroneous
B. Prejudicial
C. Subject matter of appeal
D. Incorrect
Answer: C
76.
Revision u/s 264 can be initiated by:
A. AO
B. Assessee
C. CIT
D. ITAT
Answer: B
77.
Time limit for filing revision u/s 264:
A. 6 months
B. 1 year
C. 2 years
D. 4 years
Answer: B
78.
CIT(A) powers are:
A. Co-terminus with AO
B. Limited
C. Advisory
D. Administrative
Answer: A
79.
Enhancement by CIT(A) requires:
A. Approval
B. Notice to assessee
C. Consent
D. Court order
Answer: B
80.
Appeal effect must be given within:
A. 1 month
B. 3 months
C. 6 months
D. 1 year
Answer: B
🔹 Settlement / Interim Board (Advanced)
81.
Settlement requires disclosure of:
A. Known income
B. Undisclosed income
C. Estimated income
D. Future income
Answer: B
82.
Application for settlement once rejected:
A. Can be refiled
B. Cannot be refiled
C. Filed after appeal
D. Filed before AO
Answer: B
83.
Settlement order is binding on:
A. Assessee only
B. Department only
C. Both
D. Courts
Answer: C
84.
Settlement provides immunity from:
A. Tax
B. Interest
C. Penalty & prosecution
D. All
Answer: C
85.
Settlement proceedings abate if:
A. Non-cooperation
B. False disclosure
C. Non-payment
D. All
Answer: D
🔹 Time Limits (Advanced)
86.
Time limit for issuing notice u/s 148 generally:
A. 3 years
B. 6 years
C. 10 years
D. Depends on amount
Answer: D
87.
Reopening beyond 10 years allowed if income escaped exceeds:
A. ₹10 lakh
B. ₹25 lakh
C. ₹50 lakh
D. ₹1 crore
Answer: C
88.
Time limit for completion of reassessment:
A. 6 months
B. 9 months
C. 12 months
D. 18 months
Answer: C
89.
Limitation excludes time for:
A. Audit
B. Stay by court
C. Reference to valuation officer
D. All
Answer: D
90.
Penalty proceedings must be initiated:
A. Before assessment
B. During assessment
C. After appeal
D. Anytime
Answer: B
91.
Time limit for passing penalty order depends on:
A. Assessment
B. Appeal
C. Both
D. None
Answer: C
92.
Rectification cannot be done if:
A. Mistake debatable
B. Mistake apparent
C. Clerical error
D. Arithmetic error
Answer: A
93.
Time limit for giving appeal effect can be extended by:
A. AO
B. CIT
C. CBDT
D. ITAT
Answer: B
94.
Time limit for search assessment counted from:
A. Date of search
B. End of FY of search
C. Date of notice
D. Date of seizure
Answer: B
95.
Belated return can be filed up to:
A. End of AY
B. 1 year after AY
C. Before assessment
D. Both A & C
Answer: D
96.
Updated return under 139(8A) can be filed within:
A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer: B
97.
Time limit for revision u/s 263 counted from:
A. Date of order
B. End of FY of order
C. Date of notice
D. Date of appeal
Answer: B
98.
Time limit for filing return under 139(1) for companies:
A. 31 July
B. 31 Oct
C. 30 Sept
D. 31 Dec
Answer: B
99.
Assessment becomes time-barred if not completed within:
A. Prescribed limit
B. 1 year
C. 2 years
D. 3 years
Answer: A
100.
Limitation provisions ensure:
A. Speedy justice
B. Tax collection
C. Compliance
D. Penalty
Answer: A
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