Welcome to Part 2 of our ITI Departmental Examination 2025 – Office Procedure (Paper IV): Answers & Explanations series. This part covers Questions 51–100, focusing on important provisions of the Income Tax Act, 1961, including assessment and reassessment procedures, scrutiny selection guidelines, search and survey provisions, refunds and interest, appellate proceedings, recovery of tax arrears, audit procedures, office records and statistical reports, as well as the Central Action Plan (CAP) 2024–25 and other departmental instructions. The detailed answers and concise explanations provided in this part will help candidates strengthen their conceptual understanding and practical knowledge for the Income Tax Inspector Departmental Examination while serving as a reliable reference for revision before the examination.
Question 51. From Assessment Year 2022–23 onwards, what is the time limit for completing an assessment under Section 143(3) (Scrutiny Assessment)?
a) 9 months from the end of the Assessment Year in which income was first assessable
b) 18 months from the end of the Assessment Year in which income was first assessable
c) 12 months from the end of the Assessment Year in which income was first assessable
d) 24 months from the end of the Assessment Year in which income was first assessable
Correct Answer: (c) 12 months from the end of the Assessment Year in which income was first assessable.
Explanation: For Assessment Year 2022–23 onwards, the time limit for completing a scrutiny assessment under Section 143(3) is 12 months from the end of the relevant Assessment Year.
Question 52. What is the time limit for giving effect to an order [under Section 250/254] by the Assessing Officer wholly or partly, otherwise than by making a fresh assessment or reassessment?
a) Within a period of 3 months from the end of the month in which the order is received by the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner.
b) If it is not possible to give effect within the above period, the Principal Commissioner or Commissioner may allow an additional period of 6 months.
c) Both (a) and (b) are correct.
d) Neither (a) nor (b).
Correct Answer: (c) Both (a) and (b) are correct.
Explanation: The Assessing Officer should ordinarily give effect to appellate orders within 3 months, with the Principal Commissioner/Commissioner empowered to grant an additional 6 months where necessary.
Question 53. What is the time limit for completion of assessment after issuance of directions by the Dispute Resolution Panel (DRP) under Section 144C(5)?
a) Within three months from the end of the month in which such direction is received.
b) Within two months from the end of the month in which such direction is received.
c) Within one month from the end of the month in which such direction is received.
d) Within 30 days from the date on which such direction is received.
Correct Answer: (a) Within three months from the end of the month in which such direction is received.
Explanation: After receipt of directions from the Dispute Resolution Panel (DRP) under Section 144C(5), the Assessing Officer is required to complete the assessment within three months from the end of the month in which such directions are received.
Question 54. What is the time limit for making an application to the Assessing Officer for grant of immunity from penalty under Section 270A and prosecution under Sections 276C or 276CC?
a) Within one year from the end of the month in which such order is received.
b) Within three months from the end of the month in which such order is received.
c) Within six months from the end of the month in which such order is received.
d) Within one month from the end of the month in which such order is received.
Correct Answer: (d) Within one month from the end of the month in which such order is received.
Explanation: An application seeking immunity from penalty under Section 270A and prosecution under Sections 276C/276CC must be made within one month from the end of the month in which the assessment order is received.
Question 55. Which of the following cases is NOT a valid reason under the Regular Procedure for Write-off?
a) The assessee has become insolvent.
b) The assessee has no attachable assets.
c) The assessee voluntarily requests a write-off due to hardship.
d) The assessee has died.
Correct Answer: (c) The assessee voluntarily requests a write-off due to hardship.
Explanation: Mere financial hardship or a voluntary request by the assessee is not a valid ground for write-off under the regular write-off procedure. Insolvency, death of the assessee, or absence of attachable assets are recognised grounds.
Question 56. In cases of write-off under the Regular Procedure, the Sub-Zonal/Regional Committee consists of:
a) Three officers of the level of CCIT.
b) Three officers of the level of CIT.
c) Three officers of the level of Addl. CIT.
d) Three officers of the level of DCIT/ACIT.
Correct Answer: (b) Three officers of the level of CIT.
Explanation: Under the Regular Procedure for write-off, the Sub-Zonal/Regional Committee comprises three officers of the level of Commissioner of Income Tax (CIT).
Question 57. Tax arrears can be written off by which of the following procedures?
- Regular Procedure for Write-off.
- Ad-hoc Procedure for Write-off.
- Summary Write-off.
Choose the correct option.
a) Only (i)
b) Only (i) and (iii)
c) Only (i), (ii) and (iii)
d) Only (ii)
Correct Answer: (c) Only (i), (ii) and (iii).
Explanation: Tax arrears may be written off under the Regular Procedure, Ad-hoc Procedure, or Summary Write-off Procedure, as applicable under the prescribed guidelines.
Question 58. In a case where the assessment or other order is the subject matter of an appeal before the ITAT under Section 253, no order imposing a penalty under Chapter XXI of the Income Tax Act shall be passed:
a) After 12 months from the end of the month in which the ITAT order is received by the CCIT/PCIT/CIT.
b) After 6 months from the end of the month in which the ITAT order is received by the CCIT/PCIT/CIT.
c) After 9 months from the end of the month in which the ITAT order is received by the CCIT/PCIT/CIT.
d) None of the above.
Correct Answer: (b) After 6 months from the end of the month in which the ITAT order is received by the CCIT/PCIT/CIT.
Explanation: Where the assessment order is the subject matter of an appeal before the ITAT, the penalty order under Chapter XXI must be passed within six months from the end of the month in which the ITAT order is received by the prescribed authority.
Question 59. Inspector of Income Tax is an Income Tax Authority for the purpose of which of the following provisions?
- Section 133A(1)(i)
- Section 133A(2A)
- Section 133A(3)(i)
- Section 133A(5)
Choose the correct option.
a) Only 1 & 3
b) Only 2 & 3
c) Only 1, 2 & 3
d) All of the above
Correct Answer: (c) Only 1, 2 & 3.
Explanation: For the purposes specified in Sections 133A(1)(i), 133A(2A), and 133A(3)(i), an Inspector of Income Tax is treated as an Income Tax Authority.
Question 60. Which of the following persons cannot be selected as a witness during a search operation?
a) A local Municipal Councillor.
b) A literate independent resident of the locality.
c) A legal advisor of the person being searched.
d) A neighbour unrelated to the person being searched.
Correct Answer: (c) A legal advisor of the person being searched.
Explanation: During a search under the Income Tax Act, witnesses should be independent and impartial. Therefore, the legal advisor of the person being searched should not be selected as a witness.
Question 61. About search of bank lockers:
(i) A single warrant of authorization is sufficient to search all bank lockers of a person across different branches.
(ii) If a locker cannot be searched immediately, it may be sealed under Section 132(3) and searched later.
Choose the correct option.
a) Only (i) is correct.
b) Only (ii) is correct.
c) Both (i) and (ii) are correct.
d) Both (i) and (ii) are false.
Correct Answer: (b) Only (ii) is correct.
Explanation: A separate authorization is generally required for lockers at different branches. However, where a locker cannot be searched immediately, it may be restrained under Section 132(3) and searched subsequently.
Question 62. Under a search conducted pursuant to Section 132 of the Income Tax Act, if the Authorized Officer invokes Section 132(3) and applies a restraint (seal) on a premises, which of the following best reflects the legal position?
a) The restraint under Section 132(3) can continue indefinitely if the investigation is not concluded.
b) The restraint under Section 132(3) must be followed by prosecution under Section 275A within 15 days.
c) The restraint must be lifted or followed by seizure within 60 days from the date of the search.
d) The person in possession of the premises can break the seal after recording reasons in writing.
Correct Answer: (c) The restraint must be lifted or followed by seizure within 60 days from the date of the search.
Explanation: A restraint order under Section 132(3) is only a temporary measure and must either be revoked or followed by seizure within the prescribed period of 60 days.
Question 63. Which of the following statements is/are correct in the context of a search under Section 132 of the Income Tax Act?
(i) The Authorized Officer can requisition police assistance for execution of the search warrant.
(ii) The person searched can be forced to sign a statement admitting undisclosed income.
(iii) The officer must prepare a Panchnama in the presence of at least three independent witnesses.
(iv) Seizure of stock-in-trade is not permitted.
Choose the correct option.
a) Only (i), (iii) and (iv)
b) Only (i) and (iii)
c) Only (ii) and (iv)
d) All of the above
Correct Answer: (a) Only (i), (iii) and (iv).
Explanation: The Authorized Officer may seek police assistance, a Panchnama is to be prepared in the presence of independent witnesses, and stock-in-trade is generally not seized. A person cannot be compelled to sign a statement admitting undisclosed income.
Question 64. Which of the following scenarios would most likely fail the “substantial question of law” test for admission of an appeal before the High Court under Section 260A?
a) The Assessing Officer adopted a view supported by High Court precedent, but the CIT(A) disagreed.
b) The CIT(A) made an enhancement without issuing a show cause notice.
c) The assessee disputes only the quantum of cash deposits treated as income, without challenging the legal basis of the addition.
d) The ITAT reversed the CIT(A)’s decision based on evidence not considered by the CIT(A).
Correct Answer: (c) The assessee disputes only the quantum of cash deposits treated as income, without challenging the legal basis of the addition.
Explanation: A mere dispute regarding appreciation of facts or quantum does not ordinarily give rise to a substantial question of law under Section 260A.
Question 65. As per Instruction No. 2/2024 on Internal Audit, which statement correctly defines “Revenue Effect”?
a) It is the notional tax on total assessed income including surcharge, cess and interest.
b) It represents the total tax including interest payable after adjustments suggested in the Audit Memo.
c) It is the difference between the tax assessed and the tax that would be chargeable if total income were increased or reduced by the audit issue, inclusive of surcharge and cess but excluding interest (except where interest itself is under objection).
d) It is the sum of tax, interest and penalties remaining unpaid as per the Audit Memo.
Correct Answer: (c)
Explanation: “Revenue Effect” means the difference between the assessed tax and the tax that would be chargeable after giving effect to the audit objection, including surcharge and cess but excluding interest unless interest itself is under objection.
Question 66. If the system being impounded contains volatile data (data in memory), what action should be taken according to the Office Procedure Manual of the Income Tax Department, 2019?
a) Immediately shut down the system.
b) Remove the memory chips and store them separately.
c) Use specialized software to capture data residing in the memory.
d) Merely document the status of the open applications.
Correct Answer: (c) Use specialized software to capture data residing in the memory.
Explanation: Volatile data stored in RAM should be captured using specialized forensic software before the system is shut down, as such data is otherwise lost.
Question 67. Return Receipt Register also helps in identifying:
a) Recovery of tax.
b) Stop-filers and Non-filers.
c) Demand of the taxpayer.
d) None of the above.
Correct Answer: (b) Stop-filers and Non-filers.
Explanation: The Return Receipt Register serves as an important control register for identifying stop-filers and non-filers.
Question 68. As per the CBDT directive mentioned in the text, what is the threshold amount of undisclosed cash found during a survey in Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Pune, Bengaluru and Hyderabad that should be intimated to the PDIT (Investigation) for considering a search under Section 132(1)?
a) Equal to or exceeding Rs. 5 lakh.
b) Equal to or exceeding Rs. 10 lakh.
c) Equal to or exceeding Rs. 15 lakh.
d) Any amount of undisclosed cash found.
Correct Answer: (b) Equal to or exceeding Rs. 10 lakh.
Explanation: The CBDT instruction prescribes that where undisclosed cash of Rs. 10 lakh or more is detected during survey in the specified metropolitan cities, the matter should be reported to the PDIT (Investigation) for considering action under Section 132(1).
Question 69. If a particular record requisitioned by the Local Audit Party (LAP) cannot be made available, what is the Assessing Officer required to do?
a) Ignore the requisition if the record is considered unimportant.
b) Inform the LAP verbally regarding its non-availability.
c) Communicate the reasons in writing to the LAP with the prior approval of the PCIT and ensure that the record is produced during the next audit.
d) Provide only a summary of the record.
Correct Answer: (c)
Explanation: If the required record cannot be produced, the Assessing Officer should communicate the reasons in writing, with prior approval of the Principal Commissioner of Income Tax (PCIT), and ensure that the record is produced during the next audit.
Question 70. If a PCIT does not accept an Audit Objection after receiving the Local Audit Report (LAR), within what period should a reply be sent to the C&AG specifying the reasons?
a) Within one month.
b) Within two months.
c) Within three months.
d) Within fifteen days.
Correct Answer: (b) Within two months.
Explanation: Where the Principal Commissioner of Income Tax (PCIT) does not accept an audit objection, a reasoned reply should be sent to the Comptroller and Auditor General (C&AG) within two months of receipt of the Local Audit Report.
Question 71. Who can file an appeal before the High Court against an order passed by the Appellate Tribunal?
a) Only the assessee.
b) Only the Principal Chief Commissioner or Commissioner.
c) The Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner or an assessee aggrieved by the order.
d) Any interested party but not the aggrieved person.
Correct Answer: (c) The Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner or an assessee aggrieved by the order.
Explanation: Under Section 260A of the Income Tax Act, 1961, an appeal to the High Court against an order of the Appellate Tribunal may be filed by the Revenue authorities specified in the Act or by an assessee aggrieved by such order, provided a substantial question of law is involved.
Question 72. When an assessment order is set aside or cancelled and a fresh assessment is directed to be made, the refund due on account of demand already paid shall become due on:
a) The date of the order setting aside the assessment.
b) 30 days from the date of the order setting aside the assessment.
c) 90 days from the date of the order setting aside the assessment.
d) The making of such fresh assessment order.
Correct Answer: (d) The making of such fresh assessment order.
Explanation: Where an assessment is set aside or cancelled with a direction to make a fresh assessment, the refund becomes due only upon completion of the fresh assessment.
Question 73. Mr. A paid excess Advance Tax during F.Y. 2022–23 on 15 March 2023. He filed his return for A.Y. 2023–24 on 31 October 2023, after the due date of 31 July 2023. His refund was issued on 15 January 2024. From which date will interest under Section 244A be calculated?
a) From 1 April 2023 to 15 January 2024.
b) From 15 March 2023 to 15 January 2024.
c) From 31 October 2023 to 15 January 2024.
d) No interest is payable as the return was filed late.
Correct Answer: (c) From 31 October 2023 to 15 January 2024.
Explanation: Where the return is furnished after the due date, interest on refund under Section 244A is computed from the date of furnishing the return until the date on which the refund is granted.
Question 74. Under Section 244A(1A), in which of the following cases is the assessee entitled to additional interest at the rate of 3% per annum (over and above the normal interest) on refund?
a) Refund arising due to excess payment of Advance Tax.
b) Refund arising as a result of an order under Sections 250, 254, 260, 262, 263 or 264 (without fresh assessment) and granted after the prescribed time.
c) Refund arising due to rectification under Section 154.
d) Refund issued within the prescribed time under Section 143(1).
Correct Answer: (b)
Explanation: Additional interest under Section 244A(1A) is payable where a refund arises as a consequence of specified appellate or revisional orders (without requiring a fresh assessment) and the refund is not granted within the prescribed period.
Question 75. The purpose of the Report on Prosecution Cases in statistical returns is to:
a) Highlight pending audit objections.
b) Track cases where refunds are delayed.
c) Monitor criminal proceedings initiated for tax evasion.
d) Reflect the revenue impact of completed assessments.
Correct Answer: (c) Monitor criminal proceedings initiated for tax evasion.
Explanation: The statistical report on prosecution cases is intended to monitor prosecution proceedings initiated for offences relating to tax evasion and other violations under the Income Tax Act.
Question 76. Which of the following items is not chargeable under Office Expenses?
a) Purchase of stationery.
b) Annual Maintenance Contract (AMC) of computers.
c) Legal consultancy charges.
d) Procurement of vehicles.
Correct Answer: (d) Procurement of vehicles.
Explanation: Procurement of vehicles is treated as capital expenditure and is not booked under the object head Office Expenses.
Question 77. Before adjusting a refund under Section 245, what procedural requirement must be fulfilled by the Income Tax Department?
a) Approval of the Assessing Officer must be recorded.
b) The taxpayer must file Form 30C.
c) A prior written intimation must be issued to the taxpayer.
d) Prior sanction of the Principal CIT must be obtained.
Correct Answer: (c) A prior written intimation must be issued to the taxpayer.
Explanation: Before adjusting a refund against outstanding demand under Section 245, the Department must issue a prior written intimation to the taxpayer and provide an opportunity to respond.
Question 78. Which officer is authorized to approve re-appropriation of funds between object heads?
a) CIT (Administration)
b) JCIT (Expenditure)
c) DGIT (Expenditure & Budget)
d) Member (Budget)
Correct Answer: (c) DGIT (Expenditure & Budget).
Explanation: Approval for re-appropriation of funds between object heads is vested in the Director General of Income Tax (Expenditure & Budget) in accordance with the prescribed financial procedures.
Question 79. What is the primary difference between CAP-I and CAP-II reports?
a) CAP-I deals with prosecution data, whereas CAP-II deals with audit objections.
b) CAP-I captures demand and collection data, whereas CAP-II records the workload statistics of Assessing Officers.
c) CAP-I is submitted quarterly, whereas CAP-II is submitted annually.
d) CAP-I is submitted by CIT(A), whereas CAP-II is submitted by the ITAT.
Correct Answer: (b) CAP-I captures demand and collection data, whereas CAP-II records the workload statistics of Assessing Officers.
Explanation: CAP-I primarily relates to demand and collection statistics, whereas CAP-II captures workload and assessment-related statistics of Assessing Officers.
Question 80. Which option is correct regarding Net Collectible Demand in CAP-I?
a) It includes demands stayed by orders of Courts.
b) It includes all disputed demands.
c) It does not include demands that are difficult to recover.
d) None of the above.
Correct Answer: (c) It does not include demands that are difficult to recover.
Explanation: Net Collectible Demand represents the demand that is realistically recoverable and therefore excludes demands categorized as difficult to recover under the prescribed guidelines.
Question 81. X gifted bank fixed deposits to his four minor sons on which they earned interest. The sons now want to claim refund of TDS deducted. The refund can be claimed:
a) By each of them in their separate returns.
b) By X only.
c) By the eldest son.
d) By any one of them on behalf of the others.
Correct Answer: (b) By X only.
Explanation: Since the interest earned by the minor children is clubbed with the income of the parent under the Income Tax Act, the credit of TDS and the consequential refund are also to be claimed by the parent in whose hands the income is assessed.
Question 82. The intimation under Section 143(1) of the Income Tax Act, 1961 shall not be sent after the expiry of ________ months from the end of the financial year in which the return is made.
a) 9 months
b) 6 months
c) 12 months
d) 3 months
Correct Answer: (a) 9 months
Explanation: An intimation under Section 143(1) cannot be issued after the expiry of 9 months from the end of the financial year in which the return is furnished.
Question 83. Which of the following are the Monthly Reports submitted by the Field Offices?
- Speedy Processing Report
- CAP-I
- RTI Report
- Pendency Report of Revenue/Internal Audit Objections
Choose the correct option.
a) Only (1) and (2)
b) Only (1), (2) and (3)
c) Only (1), (2) and (4)
d) All the above
Correct Answer: (d) All the above
Explanation: All four reports—Speedy Processing Report, CAP-I, RTI Report, and the Pendency Report of Revenue/Internal Audit Objections—form part of the monthly reports submitted by the field offices.
Question 84. Which of the following offices has to maintain the Execution Register?
a) The Income Tax Officer.
b) The Addl./Joint Commissioner of Income Tax.
c) The Tax Recovery Officer.
d) None of the above.
Correct Answer: (c) The Tax Recovery Officer.
Explanation: The Execution Register is maintained in the office of the Tax Recovery Officer (TRO) for monitoring the execution of recovery certificates and recovery proceedings.
Question 85. When is the notice under Section 245 issued?
a) When the assessee fails to furnish the return within the due date under Section 139.
b) When the assessee is required to produce books of account or documents.
c) When the assessee has a refund which the Department intends to adjust against outstanding demand.
d) None of the above.
Correct Answer: (c) When the assessee has a refund which the Department intends to adjust against outstanding demand.
Explanation: A notice under Section 245 is issued before adjusting a refund due to the assessee against any outstanding tax demand, after giving prior intimation to the assessee.
Question 86. The notice under Section 143(2) must be served within:
a) 6 months from the end of the month in which the return was furnished.
b) 12 months from the end of the financial year in which the return was furnished.
c) 6 months from the end of the financial year in which the return was furnished.
d) 3 months from the end of the financial year in which the return was furnished.
Correct Answer: (d) 3 months from the end of the financial year in which the return was furnished.
Explanation: A notice under Section 143(2) must be served within 3 months from the end of the financial year in which the return is furnished.
Question 87. Which of the following is not a feature of provisional attachment under Section 281B?
a) The Assessing Officer is empowered to provisionally attach any property of the assessee to protect the interest of revenue.
b) It is made during the pendency of assessment or reassessment proceedings even though there is no outstanding demand against the assessee.
c) Provisional attachment is effective for 6 months only.
d) Ordinarily the provisional attachment is effective for 6 months, but it may be extended up to one year after recording reasons in writing.
Correct Answer: (c) Provisional attachment is effective for 6 months only.
Explanation: Provisional attachment under Section 281B is ordinarily valid for 6 months, but it can be extended up to one year after recording reasons in writing. Therefore, option (c) is incorrect.
Question 88. Entries relating to the details of a Refund Order, such as the Refund Order Number, Date of Refund Order and Date of Service, are made in which of the following registers?
a) Arrears Demand and Collection VO Register.
b) Current Demand and Collection Register.
c) Return Receipt Register.
d) None of the above.
Correct Answer: (b) Current Demand and Collection Register.
Explanation: Particulars relating to refund orders, including the refund order number, date and date of service, are entered in the Current Demand and Collection Register.
Question 89. In which register are the assessee’s details maintained by the Income Tax Office?
a) Demand Register and Collection Register.
b) IRLA.
c) Blue Book.
d) None of the above.
Correct Answer: (c) Blue Book.
Explanation: The Blue Book is maintained by the Income Tax Office for recording and maintaining the basic details of assessees.
Question 90. A summons under Section 131 of the Income Tax Act is not issued in respect of which of the following matters?
a) Discovery and inspection.
b) Enforcing the attendance of any person.
c) Compelling the production of books of account and other documents.
d) Compelling the production of money, bullion, jewellery or other valuable article or thing.
Correct Answer: (d) Compelling the production of money, bullion, jewellery or other valuable article or thing.
Explanation: The powers under Section 131 extend to discovery and inspection, enforcing attendance, examining persons on oath, and compelling production of books of account and documents. They do not extend to compelling production of money, bullion, jewellery or other valuable articles.
Question 91. Which of the following case(s) is/are not covered within the parameters for Compulsory Selection of Returns for Complete Scrutiny during FY 2024–25?
(i) Survey conducted under Section 133A leading to detection of specific information/material pointing to tax evasion.
(ii) Search & Seizure/Requisition under Sections 132/132A conducted on or after 01.04.2021.
(iii) Return furnished in response to notice under Section 142(1) issued on the basis of NMS/AIS/SFT/CPC-TDS information received from DIT (I&CI).
(iv) Survey conducted under Section 133A(2A).
a) (iii) & (iv)
b) (ii), (iii) & (iv)
c) (i), (ii) & (iii)
d) (i) & (iv)
Correct Answer: (a) (iii) & (iv)
Explanation: For FY 2024–25, compulsory scrutiny covers cases arising from survey under Section 133A (other than Section 133A(2A)) and search/requisition cases. Returns filed in response to notices based on NMS/AIS/SFT/CPC-TDS information and surveys under Section 133A(2A) are not covered under these compulsory scrutiny parameters.
Question 92. As per the Income Tax Act, 1961, as amended w.e.f. 01.09.2024, in which of the following cases can a notice under Section 148 be issued?
| Time elapsed from end of AY | Escaped Income |
| (i) 3 years 2 months | Rs. 25 lakh |
| (ii) 5 years 3 months | Rs. 45 lakh |
| (iii) 5 years 1 month | Rs. 60 lakh |
| (iv) 7 years 3 months | Rs. 90 lakh |
a) (i) & (ii) only
b) (ii) & (iii) only
c) (i) & (iii) only
d) (iii) & (iv) only
Correct Answer: (c) (i) & (iii) only
Explanation: After the amendments effective from 01.09.2024, notice under Section 148 can be issued within the revised statutory time limits subject to the prescribed monetary threshold for escaped income. Applying these provisions, only cases (i) and (iii) qualify.
Question 93. Mr. ABC, an Assessing Officer, issued a notice under Section 148 on 20.03.2023, which was served on 05.04.2023. What is the time limit for completion of reassessment proceedings under Section 147?
a) 31.12.2023
b) 31.12.2024
c) 31.03.2024
d) 31.03.2025
Correct Answer: (b) 31.12.2024
Explanation: Since the notice was served on 05.04.2023, the reassessment is to be completed within the statutory period reckoned from the financial year in which the notice was served, making 31.12.2024 the applicable limitation date.
Question 94. Which of the following changes were introduced by the Finance Act (No. 2), 2024, effective from 01.09.2024, regarding reopening of assessment under Section 147?
(i) Change in the level of Specified Authority for Sections 148 and 148A.
(ii) Reduction in the maximum time limit for reopening.
(iii) Meaning of “Information” for Section 148.
(iv) Change in the category of cases where Section 148A shall not apply.
a) (i), (ii) & (iii) only
b) (i), (iii) & (iv) only
c) (iii) & (iv) only
d) (i), (ii), (iii) & (iv)
Correct Answer: (d) (i), (ii), (iii) & (iv)
Explanation: The Finance Act (No. 2), 2024 introduced changes relating to the Specified Authority, time limits, definition of information, and exceptions to the applicability of Section 148A.
Question 95. According to the Central Action Plan (CAP) 2024–25, what was the minimum percentage of the annual target for reduction in arrear demand to be achieved by each Pr. CCIT Region by 31.12.2024?
a) 70%
b) 60%
c) 50%
d) 80%
Correct Answer: (c) 50%
Explanation: CAP 2024–25 prescribed that every Pr. CCIT Region should achieve at least 50% of its annual target for reduction of arrear demand by 31 December 2024.
Question 96. As per Central Action Plan 2024–25, the Jurisdictional Assessing Officer should dispose of a request for deactivation of duplicate PAN in accordance with the SOP within:
a) 10 days of receipt of the request
b) 15 days of receipt of the request
c) 30 days of receipt of the request
d) One month from the end of the month in which the request is received
Correct Answer: (b) 15 days of receipt of the request
Explanation: CAP 2024–25 requires the Jurisdictional Assessing Officer to dispose of requests for deactivation of duplicate PANs within 15 days in accordance with the prescribed SOP.
Question 97. As per CAP 2024–25, Assessing Officers shall submit a Remand Report under Section 250(4):
- In cases where stay has been granted: within ____ days.
- In all other cases: within ____ days.
a) 45 days & 70 days
b) 30 days & 90 days
c) 60 days & 30 days
d) 30 days & 60 days
Correct Answer: (d) 30 days & 60 days
Explanation: CAP 2024–25 prescribes submission of the remand report within 30 days where stay has been granted and within 60 days in other cases.
Question 98. Information in Form 49C is required to be furnished by non-residents having Liaison Offices in India. It is filed pursuant to Section ____ of the Income Tax Act.
a) Section 281
b) Section 163
c) Section 285
d) Section 282A
Correct Answer: (c) Section 285
Explanation: Form 49C is the annual statement required to be furnished under Section 285 read with Rule 114DA, within 60 days from the end of the financial year.
Question 99. Assessments arising from a survey under Section 133A (other than Section 133A(2A)) leading to detection of specific information/material pointing to tax evasion are selected for compulsory scrutiny with prior administrative approval of:
a) Principal Chief Commissioner/Principal Director General/Chief Commissioner/Director General
b) Principal Commissioner/Principal Director/Commissioner/Director
c) Additional Commissioner/Additional Director/Joint Commissioner/Joint Director
d) None of the above
Correct Answer: (a) Principal Chief Commissioner/Principal Director General/Chief Commissioner/Director General
Explanation: Such survey cases are selected for compulsory scrutiny only after obtaining prior administrative approval from the Pr. CCIT/Pr. DGIT/CCIT/DGIT, as prescribed in the scrutiny guidelines.
Question 100. Consider the timelines for submission of AO responses in the ITBA Recovery Module for dossier reports relating to outstanding demands as on 01.04.2024 under CAP 2024–25:
(i) Demands of Rs. 500 crore and above – by 30.04.2024.
(ii) Demands between Rs. 10 crore and Rs. 500 crore – by 30.05.2024.
(iii) Demands between Rs. 1 crore and Rs. 10 crore – by 30.05.2024.
Choose the correct option.
a) Only (i) & (ii)
b) Only (ii) & (iii)
c) All are correct
d) Only (i) & (iii)
Correct Answer: (c) All are correct
Explanation: CAP 2024–25 prescribes all three timelines for submission of AO responses in the ITBA Recovery Module based on the amount of outstanding demand.
This concludes Part 2 of our ITI Departmental Examination 2025 – Office Procedure (Paper IV): Answers & Explanations series, covering Questions 51–100. This part discusses important topics such as assessment and reassessment proceedings, scrutiny selection, search and survey provisions, refund and interest, appellate procedures, audit, recovery of tax arrears, office records, statistical reports, and the Central Action Plan (CAP) 2024–25, all of which are highly relevant for the Income Tax Inspector Departmental Examination as well as day-to-day departmental work. With this, the complete set of 100 questions and detailed explanations for Paper IV – Office Procedure has been covered. Candidates are advised to revise these questions thoroughly along with the relevant statutory provisions, CBDT instructions, and departmental manuals to strengthen their conceptual understanding and improve their performance in the Departmental Examination. Stay connected with Simple Income Tax for more previous year solved papers, practice MCQs, study notes, and the latest departmental examination updates.
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