The 'Search and Seizure' under Section 132 of Income Tax Act is commonly known as: MCQ with Answer and Explanation

The 'Search and Seizure' under Section 132 of Income Tax Act is commonly known as:
A. Survey
B. Raid
C. Assessment
D. Audit
Answer: Option B
Solution (By JKSSB Mock Tests)
Search and seizure is an extreme measure to unearth undisclosed income.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the General Financial Rules (GFR) 2017, the 'Contingent Expenditure' includes:
A. Expenditure on unforeseen events like natural calamities or legal claims
B. Salary and wages of regular staff
C. Expenditure on routine maintenance
D. Expenditure on capital assets

Correct Answer: Option A


Explanation:
Contingent expenditure under GFR refers to expenditure that is not certain and depends on the occurrence of unforeseen events, such as natural disasters, accidents, or legal claims against the government.

Question #2
A: A Ledger account is opened for each type of asset, liability, equity, income, and expense. R: The Ledger is the principal book of accounts. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. A is false but R is true
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false

Correct Answer: Option C


Explanation:
A ledger account is indeed opened for every element of the financial statements to classify and summarize transactions. It is the principal book of accounts. Both are true, but R doesn't explain *why* accounts are opened for each element.

Question #3
A firm's average profit is ₹1,20,000, normal rate 10%, capital employed ₹8,00,000. Goodwill by capitalisation of average profit method will be: (Capitalised value of average profit less net assets)
A. ₹4,00,000
B. ₹12,00,000
C. ₹8,00,000
D. ₹2,00,000

Correct Answer: Option A


Explanation:
Capitalised value = 1,20,000 / 10% = 12,00,000. Goodwill = 12,00,000 - 8,00,000 = 4,00,000.