Skip to content

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

During assessment of Bharat Vidya Trust, a registered non-profit organisation, the Assessing Officer is satisfied that it has committed a specified violation mentioned in section 351(1). What must he do 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 make the assessment order until he gives effect to the order that authority passes on the reference under section 351(2).

  1. AComplete the assessment immediately and withdraw the registration through the assessment order
  2. BSend a reference to the Principal Commissioner or Commissioner to withdraw approval or registration, and not make the assessment order without giving effect to that authority's order under section 351(2)(ii)(A) or (B)Correct
  3. CRecommend withdrawal to the Central Government, which then passes the order
  4. DIgnore the violation unless the trust has also filed a late return

Explanation

Section 270(13) requires the Assessing Officer to send a reference to the Principal Commissioner or Commissioner and bars him from making the assessment without giving effect to the order passed under section 351(2)(ii)(A) or (B). Option C describes the separate procedure under section 270(14) for universities and colleges referred to in section 45(3)(a), which is a different entity type.

Did you get it right without looking?

One question tells you little. A timed set on Assessment of Various Entities shows your real accuracy, how long you take and where you lose marks.

Practise Assessment of Various EntitiesFree diagnostic mock

More Assessment of Various Entities questions