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

Anand Charitable Trust, a registered non-profit organisation, was assessed under section 270(10) after the Assessing Officer concluded that it committed a specified violation mentioned in section 351(1). Which statement correctly describes the procedure under section 270(13)?

The Assessing Officer must refer the matter to the Principal Commissioner or Commissioner for withdrawal of approval or registration. He cannot complete the assessment without giving effect to the order that authority passes under section 351(2)(ii)(A) or (B). He cannot withdraw the registration himself.

  1. AThe Assessing Officer himself withdraws the registration and completes the assessment
  2. BThe Assessing Officer refers the matter to the Principal Commissioner or Commissioner, and cannot make the assessment without giving effect to the order passed under section 351(2)(ii)(A) or (B)Correct
  3. CThe Assessing Officer recommends withdrawal to the Central Government, which passes the order
  4. DThe assessment proceeds normally and withdrawal is considered only in the next year

Explanation

Section 270(13) requires the Assessing Officer to send a reference to the Principal Commissioner or Commissioner to withdraw approval or registration. He then cannot assess without giving effect to that authority's order. Option C describes the recommendation route for universities and colleges under sub-section (14), not for non-profit organisations.

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