Income tax - assessment, appeals, penalties & prosecution MCQs with Answers

In which case Justice J.C. Shah of S.C. observed "Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the tax payer, the power must be exercised strictly in accordance with law and only for the purpose for which law authorizes it to be exercised."

Which of the following is NOT one of the classes of income-tax authorities listed in section 236 of the Income-tax Act, 2025?

The Central Board of Direct Taxes, which heads the list of income-tax authorities in section 236 of the Income-tax Act, 2025, is constituted under

Consider the following statements about the powers of the Central Board of Direct Taxes under section 239 of the Income-tax Act, 2025:
Statement 1: The Board may direct an Assessing Officer to dispose of a particular case in a particular manner.
Statement 2: The Board may not issue instructions that interfere with the discretion of the Joint Commissioner (Appeals) or the Commissioner (Appeals) in the exercise of appellate functions.
Statement 3: To avoid genuine hardship, the Board may by general or special order authorise an income-tax authority, other than a Joint Commissioner (Appeals) or Commissioner (Appeals), to admit a claim for refund after the period specified in the Act.
Which of the statements are correct?

Under section 246(1) of the Income-tax Act, 2025, the Assessing Officer has the same powers as a civil court trying a suit under the Code of Civil Procedure, 1908, in certain matters. Which of the following is NOT one of them?

Under section 2(12) of the Income-tax Act, 2025, which of the following is NOT an "Assessing Officer"?

Match List I (section of the Income-tax Act, 2025) with List II (subject):
List I
(a) Section 266
(b) Section 271
(c) Section 279
(d) Section 292
List II
(i) Assessment of total undisclosed income of the block period after a search
(ii) Best judgment assessment
(iii) Self-assessment
(iv) Income escaping assessment

When a return is processed under section 270(1) of the Income-tax Act, 2025, the total income may be computed after making certain adjustments. Which of the following is NOT such an adjustment?

Under section 282(1) of the Income-tax Act, 2025, a notice under section 280 for income escaping assessment may be issued after four years and three months, but not more than six years and three months, from the end of the relevant tax year

Under section 292 of the Income-tax Act, 2025, where a search is initiated in the case of a person, an assessment under the other provisions of the Act for a tax year falling within the block period that is pending on the date of initiation of the search