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CA Final · Direct Tax Laws & International Taxation · Assessment of Various Entities

A registered non-profit trust, Vidya Seva Trust, filed its return. The Assessing Officer is satisfied that it has committed a specified violation mentioned in section 351(1). Which course of action matches section 270 of the Income-tax Act, 2025?

He must send a reference to the Principal Commissioner or Commissioner for withdrawal of approval or registration. He cannot make the assessment under section 270(10) without first giving effect to that authority's order under section 351(2)(ii)(A) or (B). He has no power to withdraw registration himself.

  1. AHe sends a reference to the Principal Commissioner or Commissioner to withdraw approval or registration, and the assessment under sub-section (10) cannot be made without giving effect to that authority's order under section 351(2)(ii)(A) or (B)Correct
  2. BHe withdraws the registration himself and completes the assessment immediately
  3. CHe completes the assessment first and then sends a reference for withdrawal of registration
  4. DHe recommends to the Central Government to withdraw approval, and the assessment proceeds meanwhile

Explanation

Section 270(13) directs the Assessing Officer to refer the matter to the Principal Commissioner or Commissioner. The assessment order cannot be made without giving effect to that authority's order. Withdrawal by the Assessing Officer himself is not permitted. The Central Government route in sub-section (14) applies to universities, colleges and similar institutions under section 45(3)(a).

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