Skip to content

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

Hari Charitable Trust is a registered non-profit organisation. During scrutiny under section 270, the Assessing Officer is satisfied that the trust has committed a specified violation referred to in section 351(1). What must the Assessing Officer do?

The Assessing Officer must send a reference to the Principal Commissioner or Commissioner to withdraw the trust's approval or registration. He cannot pass the assessment order until he gives effect to the order made by that authority under section 351(2). He has no power to cancel registration himself.

  1. ASend a reference to the Principal Commissioner or Commissioner to withdraw the approval or registration, and not make the assessment order without giving effect to the order passed under section 351(2)Correct
  2. BMake the assessment order immediately and leave the registration untouched
  3. CDirectly cancel the registration of the trust by his own order
  4. DRecommend to the Central Government to withdraw approval under the provision for universities and colleges

Explanation

Section 270(13) requires a reference to the Principal Commissioner or Commissioner to withdraw the approval or registration. The assessment order under sub-section (10) cannot be made without giving effect to the order passed under section 351(2). The Assessing Officer has no power to cancel the registration himself. The recommendation to the Central Government is for universities, colleges and similar institutions under sub-section (14).

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