MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR

B.A.LL.B.(Hons.) Year-IV Semester-VIII: Academic Year : 2020-2021

First Open Book Assessment, March-2021
8.2 Taxation-II

Total Marks: Thirty (30)

Instructions:
1. Read the questions carefully and answer.
2. No clarification shall be sought on the question paper.
3. Use the Answer File Template sent by Examination Section and fill the necessary
information.
4. Answer File Nomenclature : UID and Course Name
5. Use of open resource(s) to answer the question(s) permitted.
6. Email the answers in MS Word File to the respective subject teacher on or before 2:00
pm, March 07, 2021 (Sunday), without fail.
7. Students are advised not to consult faculty member/outsider or any other person
regarding the questions and must strictly adhere to professional values.
8. The contents of question papers are made strictly for private circulation only.

Note: Total No. of questions are FIVE (5). Attempt any THREE (3) questions.

1. The Bloomsdale Housing Infrastructure Pvt. Ltd. Co. (Assessee) registered at Nagpur is a
real estate promoter. The company filed a nil return of income for the assessment year
2014-15. The assessment order for the assessment year 2014-15 was passed on February
16, 2016. In the year 2018, the Assessing Officer was of the view that income to the tune
of Rs.4,50,000/- chargeable to tax has escaped assessment for the assessment year 2014-
15. Therefore, the Assessing Officer decided to invoke Section 147 of the Income Tax Act
and issued a notice on October 15 2018, under Section 148. The Assessing Officer, under
the request made by the assessee, furnished reasons for invoking Section 147 of the Income
Tax Act. The assessee, on receipt of reasons, submitted objections. Without giving disposal
to the objections, the Assessing Officer proceeded to hear the matter and ultimately passed
the assessment order on February 26, 2019.
In the light of the above factual matrix, you are required to analyse the various provisions
of the Income Tax Act for Re-opening of Assessment along with the relevant judicial
pronouncements. 10 Marks

2. M/s. Grid Industries Ltd. Is a supplier of products in the textile and graphics printing
market and engaged in manufacturing Rotary screen-printing machine and also offers
products for conventional and digital engraving methods. M/s Grid Industries entered into
a contract with JPG Prints Canada (hereafter referred to as ‘JPC’) to provide services such
as installation/up-grading machines sold by JPC, training at JPC’s customers’ site in India
as per the instructions of JPC. The relevant extract from the contract relating to the scope
of service is as under:
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 M/s Grid has agreed that it shall, on behalf of and as per the instruction from JPC
shall provide services concerning:
i. Installation and/or upgrades of machines sold by JPC and shall also
give training at JPC’s customer site in co-ordination with JPC.
ii. Machines sold by SPA in India and which are under warranty period.
iii. Machines that are under service contracts with SPA.
iv. Machines which are not having a warranty and/or service contracts.
Apart from the scope as mentioned above of services, M/s. Grid will also receive a
commission for service contracts sold in India from SPA. M/s. Grid shall raise the invoice
to JPC for services mentioned under clause (i) to (iii). In the case of service at (iv), M/s
Grid shall raise the invoice to the Indian customer for such services. M/s. Grid will service
JPC’s Machines in India and shall not actively solicit service customers having their place
of business or in default of such place, their place of residence, outside India. M/s Grid
would receive service charges as a consideration in convertible foreign currency
periodically based on the number of hours spent on the supply of service in terms of the
said contract. Hourly rates have also been agreed upon in the contract for the supply of
services like Travel Hours 40 Dollars per hour, Working Hours 40 Dollars per Hour and
Overtime 60 Dollars per Hour. The revision, if any, in above mentioned hourly rates shall
be mutually decided between both the parties to the agreement in the first month of each
calendar year, till the time this agreement subsists.
Given the above facts and circumstances, M/s Grid is seeking your opinion on whether the
specified transaction should be categorised as individual supply or composite supply of
service as per the Central Goods and Services Tax Act, 2017? 10 Marks
3. Ish Info Services Ltd., a Company registered under the Companies Act and registered
under GST, is engaged in the business of providing exam, certification and other allied
services including various types of surveys, assessments, and exam services to various
clients, including individuals, educational institutions, firms, corporate bodies,
government undertakings. The company entered into contracts with customers to provide
various services. The broad scope of work can be understood to be as under:
i. The company shall provide necessary exam services through the Exam centre
infrastructure installed at its Authorised Centres. It shall also ensure that the centre
installs and maintain necessary security controls and measures regarding
equipment/infrastructural resources provided to students.
ii. The company will completely manage the exam process electronically, allowing
the candidates to choose their required exam slots to conduct and evaluating the
exam.
iii. Pre-Exam slot booking process, including exam registration process. The
facilitating of online booking of exam shall be done through the internet.
iv. Question Bank Management wherein the client shall provide with a database of
questions in soft format, and the applicant shall provide with a secure process of
question bank management which will facilitate the generation of unique question
sets to eliminate the risk of malpractices.
v. Conducting online examination includes providing for infrastructure and ensuring

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 a secure, fool proof exam process limiting the scope for fraud and errors.
vi. The company shall also be responsible for managing the invigilation process and
shall have a supervisor at each centre.
vii. The company shall also generate the results and provide the client’s results in the
desired format.
The company charges a consolidated fee based on the exam hours conducted. The fees
shall be charged based on the exam hours booked, irrespective of the students appearing
for the exams or not.
Based upon the above information, substantiate your answer with the help of relevant
provisions and case laws:
a) Whether the services provided by the company are exempted under GST?
b) Whether the services shall be considered as Composite Supply or Mixed Supply?
10 Marks
4. Mr. Rakesh, the ‘assessee’ an individual, derives income from trading, salary and interest.
For the assessment year 2018-19 under consideration, the assessee filed a return of income
declaring net income of Rs.7,69,610/-. The case was selected for scrutiny. Notices under
sections 143(2) and 142(1) of the Act were issued. In response, the assessee filed the
requisite information. During the year, the assessee had received salary outside India. The
same was credited in Indian Bank, Ghaziabad. The Assessing Officer asked the assessee
to explain why these receipts were not taxable in India. The assessee submitted that he was
an employee with a US-based company, M/s Sedco Forex International INC; that the
assessee received a salary from this company for work done outside India; that as such, it
was not taxable in India; and that moreover, said the company had also deducted TDS from
the salary, and a certificate in this regard was submitted before the Assessing Officer.
However, the Assessing Officer framed the assessment on March 19, 2019, at an income
of Rs.72,81,163/-, making the addition of Rs.65,11,553/- and treating the salary received
by the assessee as taxable in India. The CIT(A), vide order dated November 19, 2019,
treated the assessee as a resident under section 6(5) of the Act and gave the benefit of tax
paid in the source country, as per section 91 of the Act. The assessee’s appeal was partly
allowed. The assessee filed a rectification application u/s 154 of the Act before the CIT(A)
and requested that the assessee be not treated as a resident u/s 6(5) of the Act. Advise Mr.
Rakesh. 10 Marks
5. How to determine the value of goods and services or both for the purpose of GST?
Substantiate your answer with the help of relevant provisions, notifications and case laws.
10 Marks

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