1.

The assessing officer can make a reference to the

Valuation Officer in the case where the claim made by
the assessee is on the basis of the estimate made by a
registered valuer, where the value so claimed is less
than the fair market value by:

• a) 15%
• b) 25%
• c) Rs. 25000
• d) No permission prescribed.
2. Accelerated assessment u/s 174 of the Act
may be made in case of persons -

• a) Leaving India with no intention of returning

• b) Persons trying to alienate their assets
• c) Any AOP or BOI formed for a particular
event
• d) Both (a) and (b)
3. Which of the following income cannot be assessed or
reassessed u/s 147?

• a) Rental income from ancestral property

• b) Long term capital gain
• c) Short term capital gain
• d) Income involving matters which are subject
matter of any appeal, reference or revision.
4. The return of an assessee for A.Y. 2015-16 was filed
on 31.10.2015. In this case, notice u/s 148 was issued
by the AO on 31.03.2019 and served upon the
assessee on 05.04.2019. The time limit for passing the
notice u/s 147 is –

• a) 31.03.2019
• b) 31.12.2019
• c) 31.03.2021
• d) 31.12.2020
5. Provision of General Anti Avoidance Rule (GAAR) are
applicable from-

• a) AY 15-16
• b) AY 16-17
• c) AY 17-18
• d) AY 18-19
6. Which of the following is not true of an
impermissible avoidance arrangement-

• a) The main purpose is to obtain a tax benefit

• b) It lacks commercial substance
• c) It results in abuse of the provisions of the
Act.
• d) It is ordinarily entered into between
persons dealing at arm’s length
7. After obtaining a permanent account number (PAN) , which of
the duties an assessee is required to perform-

• a) Quote PAN in all his returns

• b) Quote PAN in all his returns and on challans for
payment of income tax dues
• c) Quote PAN in all his returns, on challans for
payment of income tax dues and intimate any
change in his address or name or the nature of
business on the basis of which PAN was allotted
• d) none of the above
8. Which of the following statements is correct?

• a) It is compulsory for the Assessing Officer to make an order u/s 144 of

Income tax Act,1961, after rejection of books of accounts u/s 145(3) of
Income tax act, 1961 and after giving an opportunity of being heard to the
assessee.
• b) It is compulsory for the Assessing Officer to make an order u/s 144 of
Income tax Act,1961, after rejection of books of accounts u/s 145(3) of
Income tax act, 1961 and without giving an opportunity of being heard to
the assessee
• c) It is optional for the Assessing Officer to make an order u/s 144 of
Income tax Act,1961, after rejection of books of accounts u/s 145(3) of
Income tax act, 1961 and after giving an opportunity of being heard to the
assessee.
• d) It is optional for the Assessing Officer to make an order u/s 144 of
Income tax Act,1961, after rejection of books of accounts u/s 145(3) of
Income tax act, 1961 without giving an opportunity of being heard to the
assessee.
9. According to section 2(7) of the Income Tax Act,
1961, ‘assessee’ means

• a) A person by whom any tax or other sum of money

is payable
• b) A person by whom any proceeding under the Act
has been taken
• c) A person who is deemed to be an assessee in
default under any provision of this Act
• d) All of the above
10. Assessment u/s 143(3) for assessment year 2015-16
was completed 10.12.2015. Thereafter on 01.06.2016
the Assessing Officer notices that income of Rs.72,000
had escaped assessment. The Assessing Officer in this
case could issue notice till-

• a) 31.03.2020
• b) 31.03.2022
• c) 31.03.2018
• d) 31.03.2019
11. The AO by a way of notice, under sub section (1) of
section 142 of the Act, has the authority to require,
production of books of accounts:

• a) Only for the previous year relevant to the

assessment year.
• b) For six years prior to the previous year relevant to
the assessment year.
• c) For three years prior to the previous year relevant
to the assessment year.
• d) For one year prior to the previous year relevant to
the assessment year.
12. Who has the power to issue orders in certain
cases by way of relaxation or otherwise in
respect of section 139,143,144 &147?

• a) The Chief Commissioner of Income Tax

• b) The Commissioner of Income Tax
• c) The Assessing Officer
• d) CBDT
13. If any person has sustained loss in any
previous year under the head Profits and Gains
of business or profession or under the head of
capital gain, such person need to file a loss
return in accordance with the following
provisions of Income Tax Act-

• a) sec 139(2)
• b) sec 139(3)
• c) sec 142
• d) sec 142(3)
14. The directions issued by the Joint
Commissioner of Income Tax u/s 144A of
the Act is for guidance of the AO and is-

• a) Advisory in nature
• b) Binding on the AO
• c) Suggestive in nature
• d) None of the above
15. Which of the statement is correct-

• a) Reference to valuation officer for ascertaining FMV

of a capital asset is made by the A.O. on the
recommendation of the JCIT/ Addl. CIT only.
• b) Reference to valuation officer for ascertaining FMV
of a capital asset is made by the A.O. on the
recommendation of the CIT only
• c) Reference to valuation officer for ascertaining FMV
of a capital asset is made by the A.O. only
• d) Reference to valuation officer for ascertaining FMV
of a capital asset is made by the A.O. on the
recommendation of the valuation officer only
16. Which form is prescribed for companies
required to furnish return u/s
139(4A)/4B/4C/4D-

• a) ITR 4
• b) ITR 5
• c) ITR 6
• d) ITR 7
17. As per provisions of Income Tax Act, 1961
who is required to apply for a PAN?

• a) A person whose total income during any

previous year exceeds the maximum amount
not chargeable to tax.
• b) If his total sales, turnover or gross sales are
likely to exceed four lakh rupees.
• c) Both of the above.
• d) None of the above.
18. In cases already subject to scrutiny by way of
assessment u/s 143(3) or 147 more than 4 yrs ago from the
end of the relevant assessment year, if the escaped income
is Rs. 1,00,000/- or more whichever of the following is true-

• a) ITO can issue notice with the approval of JCIT/Addl.CIT.

• b) ACIT/DCIT can issue notice with the approval of
JCIT/Addl.CIT.
• c) ITO/ACIT can issue notice with the approval of CIT or
CCIT.
• d) JCIT/ Addl.CIT can issue notice own his own without
seeking approval of the CIT/CCIT.
19. In the case assessment u/s 153A in which the last of the
authorization for search u/s 132A or requisition u/s 132A was
executed before 1.4.2018, the time limit for completion of
assessment is-

• a) Within two years from the end of the F.Y. in which the last of
the authorization for search u/s 132A or requisition u/s 132A
was executed.
• b) Within 21 months from the end of the financial year in
which the last of the authorization for search u/s 132A or
requisition u/s 132A was executed.
• c) Within two years from the date of initiation of the search.
• d) Within 18 months from the end of the financial year in
which the last of the authorization for search u/s 132A or
requisition u/s 132A was executed
20. Under which sec of the I.T. Act, 1961,
the assessing officer shall notify intimation
of loss to the assessee by an order in
writing?

• a) section 155
• b) section 157
• c) section 161
• d) section179
 21. The A.O, if has reason to believe that, it will be
detrimental to revenue if the time period of 30 days
is allowed, then he/she can shorten, the time for
payment of demand for a period less than 30 days in
a notice of demand u/s 156 on-

• a) Approval of PCIT
• b) Approval of JCIT
• c) Approval of CCIT
• d) His own.
22. Notice of demand u/s 156 is in:
(Which rule?)

• a) Form 10
• b) Form 8
• c) Form 7
• d) Form 6
23. Notwithstanding anything contained in subsection
(1) of section 143 where a notice has been issued to
the assessee under sub-section (2) of 143, a return
shall be processed:

• a) Before the expiring of one year form the

end of the A.Y. in which the return is made.
• b) Before the expiry of eighteen months.
• c) Before the issuance of an order under Sub-
section (3) of section 143.
• d) Before the expiry of 24 months.
24. Any order of assessment or re-assessment,
as the case may be, shall only be passed by an
A.O. under Sub-section (12) of section 144BA (1)
with the prior approval of -

• a) Addl./JCIT
• b) Pr.CIT/CIT
• c) Pr. Chief CIT/Chief CIT
• d) None of the above.
25. Notice under sub-section (2) of section 143
shall not be served on the assessee:

• a) After the expiry of 24 months from the end

of the F.Y. in which the return is furnished.
• b) After the expiry of 18 months from the end
of the F.Y. in which the return is furnished.
• c) After the expiry of 12 months from the end
of the F.Y. in which the return is furnished.
• d) After the expiry of 6 months from the end of
the F.Y. in which the return is furnished.
26. If during the course of search, any assets or books of account
or documents or information (in short material) relating to
“Other Person” is found then what action the Assessing Officer
of “ Searched Person” is required to take? (Which section)

• a) He will hand over the material to the Assessing

Officer of “Other Person”.
• b) He will himself issue notice to the “Other Person”
to file return.
• c) He will record his satisfaction and hand over the
material to the assessing Officer of “Other Person”.
• d) He will complete search assessment in the case of
“Other Person”.
27. Which of the following statements is
incorrect?

• a) In the case of an individual, return can be

verified by an individual himself.
• b) In the case of HUF, return can be verified by
karta or adult member of HUF.
• c) In the case of a company, return can be
verified by a company secretary.
• d) In the case of a firm, return can be verified
by a managing partner or partner.
28. What is the time limit for issuing notice
u/s 148, in case of an income escaping
assessment including income in relation to
any asset located outside India?
• a) 4 years
• b) 6 years
• c) 8 years
• d) 16 years
29. A search and seizure operation u/s 132 was
carried out in the case of an assessee on
11.08.2017. Notice u/s 153A is to be issued
requiring the assessee to furnish returns of
income for-

• a) AYs 2012-13 to 2018-19

• b) AYs 2013-14 to 2019-20
• c) AYs 2012-13 to 2018-19 (till 11.08.2017)
• d) AYs 2013-14 to 2019-20 (till 11.08.2017)
30. Which of the following is not a mistake apparent
that can be rectified u/s 154?

• a) a change in the position of law due to a

retrospective amendment necessitating
amendment of order.
• b) a claim not made in the original return or
revised return or during the course of
assessment proceedings.
• c) an error of jurisdiction.
• d) A mistake in a penalty order.
 ANSWERS
Question No. Option Question No. Option Question No. Option

1 D 11 C 21 B
2 A 12 D 22 C
3 D 13 B 23 C
4 C 14 B 24 B
5 D 15 C 25 D
6 D 16 D 26 A
7 C 17 A 27 C
8 C 18 C 28 D
9 D 19 B 29 A
10 A 20 B 30 B