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B.A. L.L.B. (HONS.)

School of Law
Continuous Assessment Test (CAT I) September 2020
Course Name : Taxation II

Time: 60 Minutes Date: 20/11/202

Max. Marks: 10 Semester: IX

Instruction :
1. Answer any two questions.
2. Each question carries equal marks.
3. Your answer needs to be specific, stating applicable rule and relevant authority.
4. Do answer only after identifying the issues involved in the proposition.
5. Don’t write more than more than 750 words for a question.

Q.1. a) Reassessment means reopening the already completed assessment on fulfillment of

certain conditions and reassess the total income of the assessee by including the income which
has escaped earlier assessment. Outline the scope of S. 147 of the Income Tax Act. Whether
there is any limitation in initiating the re-escaping assessment. Does appeal proceeding delay
create any bar on rights of assessment officer? [3]

b) Discuss the nature and scope and necessity of summary assessment. Distinguish between scrutiny
and summary assessment. [2]

Q.2. a). If forest products were sold to manufacturers for use of items purchased in the
manufacturing process and not for sale, whether TCS is applicable under Section 206 C or not?
Discuss the scope of TCS under Income Tax Act and also explain why the changes were
introduced with regard to its ambit. [3]

b). In the light of Commr.Of Income Tax,New Delhi v. M/S Eli Lilly & Company, elucidate the scope
of Section 201 Of The Income-tax Act, 1961. Whether the same principle is applicable in respect of
TCS. Also discuss the scope of section 206 C of the Income Tax Act. [2]

Q. 3. In the light of Commr. of Income Tax,New Delhi vs M/S Eli Lilly & Company (India) discuss the
scope of s. 201 with regard to applicability in case of non-compliance by the employer in deduction of
TDS. Also discuss the liability of employer with regard to salaried employees U/S. 192 of the
Income Tax Act. Substantiate your answer with the relevant statutory provisions, rules and cases
thereto. [5