Penalty for benefits to related persons: assessors may impose penalties where exempt entities apply income for excluded beneficiaries. Section 271AAE empowers the Assessing Officer to levy a penalty on specified exempt entities if, during proceedings, it is found that they applied income, directly or indirectly, for the benefit of persons excluded by the proviso to clause (23C) of section 10 or clause (c) of sub-section (1) of section 13. For a first-time detection the penalty equals the aggregate amount so applied; a repeat detection in a subsequent year attracts an enhanced penalty based on the aggregate amount applied. The provision operates without prejudice to other Chapter provisions.