Benefits to related persons - Section 271AAE - Income Tax - Ready Reckoner - Income Tax

Benefits to related persons - Section 271AAE [Inserted by Finance Act, 2022 w.e.f. 01-04-2023] Without prejudice to any other provision of this Chapter, if during any proceedings under this Act, it is found that a person, - being any fund or institution referred to in Section 10(23)(iv) or (v) or (vi) or (via) , or - any trust or institution referred to in section 11 has violated the provisions of - (a) the twenty-first proviso to clause (23C) of section 10 , [ income or part of income or property of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution applied directly or indirectly for the benefit of any person referred to in section 13(3) ]; or - (b) section 13(1)(c) ,[ i.e. in the case of a trust for charitable or religious purposes or a charitable or religious institution directly or indirectly for the benefit of any person specified in section 13(3) ] the Assessing Officer may direct that such person shall pay by way of penalty- - (a) Violation is noticed for the first time - a sum equal to the aggregate amount of income applied , directly or indirectly, by such person, for the benefit of any person referred to in section 13(3), and - (b) Violation is noticed again in any subsequent previous year - a sum equal to 200% of the aggregate amount of income of such person applied , directly or indirectly, by that person, for the benefit of any person referred to in section 13(3). Note - It may be noted that Section 271AAE seeks to operate without prejudice to any other provision of Chapter XXI . Thus, if any penalty is leviable under any of the other provisions of this chapter, in addition to such penalty, that penalty would also be applicable.