Osmania University · Faculty of Law
Law of Taxation · July/August 2012
July/August 2012 · Law of Taxation · Semester 6
FACULTY OF LAW
LL.B. (3 YDC) III Year VI Semester (New) Examination, July / August 2012
Subject : LAW
Paper - I : LAW OF TAXATION
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any five of the following:
1. Non Resident India.
2. Capital Gain.
3. Voluntary Retirement Allowance.
4. Commutation of pension.
5. Assets not subject to Wealth Tax.
6. Debts under Wealth Tax.
7. Cancelation of certificate of registration of Vat dealer.
8. TOT dealer.
PART - B (2 x 15 = 30 Marks)
Answer any two of the following:
9. When is a sale or purchase of goods said to have taken place in the course of import and export?
10. What is the meaning of "owner of the property" under section 27 of the Income Tax Act?
11. What are the debts which are deductible in computing net wealth?
12. Under VAT the dealers are divided into three categories for the purpose of registration with
reference to turnover. Give the details.
PART - C (2 x 10 = 20 Marks)
Answer any two of the following:
13. The assessee is a salaried person. He has paid tuition fees for the post-graduation of his wife. The
assessee claimed rebate on tuition fee under section 80C under Chapter VIA. The ITO rejected his
claim and levied tax. Whether the order of the ITO is correct or not?
14. The assessee is a naval officer. He is planning to take a housing loan of Rs. 20 lakh. The assessee
seeks your advise that if he gets the possession of the house only after one year, but he starts paying
interest, will he get income tax rebate? Advise.
15. The assessee has filed an incorrect wealth tax return, for the A.Y . 2009-10, belatedly after the
valuation date, and subsequently died after the wealth tax officer completed the assessment. The
wealth tax officer has taken the value of the property as on the date of filing the return and imposed
penalty on various counts. Since the assessee died after passing of the orders, the wealth tax officer
issued the demand notice on the legal representatives of the deceased assessee. Is there any ground
to defend the case of the legal representatives of the deceased assessee? Advise.
16. Prepare the proforma statement of income of the assessee pertaining to his heads of income
from salary, house property, and long term capital gains (on sale of residential house), by correctly
applying the following sections - Sec. 16, 10(13), 10(14), 80DDB, 24, 30% statutory deduction, 45(1A),
48, 54, Deduction under Chapter VIA - 80C, 80CCC, etc., TDS, and calculate the tax liability.