Skip to content

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

Lotus Foundation, a registered non-profit organisation, is being assessed under section 270(10). The Assessing Officer is satisfied that it committed a specified violation mentioned in section 351(1). What must he do?

The Assessing Officer must send a reference to the Principal Commissioner or Commissioner for withdrawal of approval or registration. He cannot make the assessment order without giving effect to the order that authority passes. He cannot withdraw the registration himself or finish the assessment first.

  1. ASend a reference to the Principal Commissioner or Commissioner to withdraw approval or registration, and not complete the assessment without giving effect to the order passed under section 351(2)(ii)(A) or (B)Correct
  2. BWithdraw the registration himself and complete the assessment immediately
  3. CIgnore the violation until the return of the next tax year
  4. DComplete the assessment and later report the violation to the Board

Explanation

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 without giving effect to the order passed by that authority under section 351(2)(ii)(A) or (B). He has no power to withdraw registration himself.

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