LL.B.6/05-4 LL.B. DEGREE VI SEMESTER (SUPPLEMENTARY) EXAMINATION, JULY 2005 TAXATION LAW Time : 3 Hours Maximum marks : 75 VI. Vi. Vil. XL. PART-A (Answer any five questions) (All questions carry equal marks) (5x6=30) ‘No tax shall be levied or collected except by authority of law’. Discuss. Give a brief account of the principles propounded by Adam Smith, which forms the basis of taxation law. Examine the meaning of ‘income’ under the Income Tax, Act. Answer any three of the following: (a) —_Perquisites (b) Casual income (©) _ Income escaping assessment (Double taxation relief How would you decide whether a particular receipt or expenditure is capital or revenue ? Mention the incomes which are ‘deemed to accrue’ or ‘arise’ in India, There are certain incomes though connected with land are not agricultural income. Discuss, How ate taxes classified ? Examine the concept of ‘sale’ under the Kerala General Sales Tax Act, 1963. PART-B (Answer any two questions) (All questions carry equal marks) (2x 12,5 =25) Mr. X, an Indian citizen, leaves India for the first time on September 10, 2003 for joining his duties in France. During the previous year 2004-2005 he comes to India on a visit for 181 days. Determine his residential for the assessment year 2005-06. Mr. Ramdas, a government employee gets Rs.96,000/- per annum as basic pay during the previous year 2003-04. In addition he received Rs.8,500/- as entertainment allowance. Actual expenditure on entertainment for official purpose amounts to Rs.10,000/-. He wants to claim the actual amount spent by him. Advise him. .XII. XML XIV. XV *Y’ is a Hindu Undivided Family (HUF). The family acquires a residential house at Kolkatha for Rs.6 lakhs on April 2002. The family undergoes complete partition on November 1, 2002 and the residential house is allotted to Z, a member of the family. The fair market value on November 1, 2002 is Rs.7 lakhs. Y sells the house on March 15, 2008 for Rs.7,90,000/-. Determine the amount of chargeable capital gain in the case of X and Y. PART -C (Answer any two questions) (All questions carry equal marks) (2x 10=20) Explain the term ‘turnover’, How is the taxable turnover determined under the Kerala General Sales Tax Act? Examine the provisions in the Income Tax Act relating to set off and carry forward of losses. When can a reference be made under the Income Tax Act ? Explain the circumstances and state the authorities to which reference can be made.