Recycled questions galore in Direct Tax Laws paper of CA Final examination of November, 2014 - V. K. Subramani - Article published in Business Advisor, dated November 25, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/

1. Volume IX Part 4 November 25, 2014 16 Business Advisor
Recycled questions galore in Direct Tax
Laws paper of CA Final examination of
November, 2014
V. K. Subramani
In the recently conducted chartered accountancy Final
examination, in most of the question papers, old
examinations‘ questions could be found. Even in core
papers such as Direct Tax Laws and Financial Reporting,
this was the case. Chartered accountants claim expert
knowledge in income tax law though it is rudimentary
with regard to indirect taxes such as excise law, service
tax and customs duty.
However, what is surprising and disappointing on
perusing the Direct Tax Laws paper of CA Final examination held on 19th of
this month is that it contains mostly recycled questions of past
examinations with no innovations, which used to be the hallmark some
years ago. Most of the questions in this examination are superficial and
exhibit dilution in the standard of examination of ICAI. Here is a quick
analysis:
Question No. 1(a): It is a pickup of one or two issues from some of the past
question papers with no new issue or recent changes in statute. Question
No. 1(b) is on wealth tax for 5 marks being a very simple one. When the set
practice or pattern is to ask for 10 marks as compulsory question, it is
disturbing to note change in set pattern by asking a 5 mark question.
Question No. 2: It consists of four sub-parts meant to test updation of
knowledge on recent decisions but the issues given were so easy, on certain
well-settled issues, except one on apex court judgment.
Question No. 3:With four sub-parts it consists of deemed dividend, accrual
of income in India under section 9, a vague one on permanent
establishment and a sub-standard question on computation of income from
other sources.
Question No. 4: It consists of two sub-parts which are lollypops for the
examinees. The first one for 8 marks is just a reproduction of old
examination question relating to partnership firm eligible to offer income on
presumptive basis under section 44AD, and the second one is on TDS

2. Volume IX Part 4 November 25, 2014 17 Business Advisor
applicable to four situations eligible for 2 marks each. Only one such issue
is somewhat tricky which related to consignee commission.
Question No. 5: It has a sub-part on house property-cum-simple capital
gain calculation, eligible for 8 marks, being for a change not a recycled copy
of past examination question on seizure of cash by DGIT eligible for 4 marks
and rectification, due to change of law on retrospective basis and
subsequent Supreme Court decision, yet the question is shabbily drafted in
spite of copying from past examination question paper.
Question No. 6: It consists of two sub-parts, one relating to computation of
deduction under section33AB and another on wealth tax with lots of
ambiguity as regards values to be adopted. Luckily, both are not reproduced
in toto from any past examination questions.
Question No. 7: It consists of 3 sub-parts, the first being on penalties, the
second on scope of assessment in respect of set aside order of ITAT, and the
final question seeking comment on section 144A and section 142(2A). This
question is a virtual bonus for the candidates.
Conclusion
It is unfortunate that the paper-setters are running short of ideas and they
resort to copying the old questions though there has been change of law
through Finance Act brought in every year.
It is high time that the Institute upholds the standard of the course by
resorting to putting quality questions befitting the image it has gained over
the years.
(V. K. Subramani is Chartered Accountant, Erode)