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

Lotus Education Trust, a registered non-profit organisation, is under assessment under section 270(10). The Assessing Officer is satisfied that it committed a specified violation mentioned in section 351(1). Which statement is correct?

The Assessing Officer must send a reference to the Principal Commissioner or Commissioner for withdrawal of registration, and cannot make the assessment order without giving effect to the order passed under section 351(2)(ii)(A) or (B). He cannot withdraw registration himself, and the Central Government route applies only to universities and similar institutions.

  1. AThe Assessing Officer can complete the assessment immediately and withdraw the registration himself
  2. BThe Assessing Officer sends a reference 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 must recommend withdrawal to the Central Government
  4. DThe Assessing Officer must ignore the violation until the next tax 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 cannot make the assessment order without giving effect to the order passed under section 351(2)(ii)(A) or (B). Option C describes the separate procedure for universities and colleges in sub-section (14).

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