Specified Violation - Section 351 ( New) / Section 12AA, 12AB, 13 (Old)

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....n focuses on the utilisation of income and requires such application to be consistent with the objects for which the organisation is registered. Section 351(1)(b) - Commercial Activity in Contravention of Section 345 A specified violation arises where the registered non-profit organisation carries out any commercial activity in contravention of section 345. Section 345 permits commercial activity for a registered NPO, other than an organisation covered by section 346, only where: • the activity is incidental to attainment of its objectives; and • separate books of account are maintained. Accordingly, a breach of the commercial-activity conditions can have a consequence beyond denial of the relevant ....

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....een disputed; or • has attained finality. Section 351(1)(g) - False or Incorrect Information in Registration Application A specified violation arises where the application referred to in section 332(1) contains false or incorrect information. Section 351(2) - Action by Principal Commissioner or Commissioner Section 351(2) specifies three circumstances in which the Principal Commissioner or Commissioner is required to examine whether a specified violation has occurred. Section 351(2)(a) - Violation Noticed by the Authority Where the Principal Commissioner or Commissioner has noticed the occurrence of one or more specified violations during any tax year, the statutory procedure may be initiated. Section 351....

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....ion Where the authority is not satisfied about the occurrence of any specified violation, an order is passed not cancelling the registration. Section 351(2)(iii) - Communication of Order A copy of the order passed under section 351(2)(ii) is required to be forwarded to: • the Assessing Officer; and • the registered non-profit organisation. Section 351(3) - Time Limit for Passing Order The order under section 351(2)(ii) must be passed before expiry of six months, calculated from the end of the quarter in which the first notice is issued by the Principal Commissioner or Commissioner calling for documents/information or initiating inquiry under section 351(2)(i). Comparative Analysis: Sections 13....

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.... women and children. Genuineness of activities Sections 12AA and 12AB provide for examination of the genuineness of activities and compliance with the objects/registration conditions. Section 351(1)(e) expressly identifies non-genuine activities or failure to comply with registration conditions as a specified violation. Compliance with other laws Section 12AB contains conditions relating to compliance with applicable laws material to the objects of the trust/institution. Section 351(1)(f) specifically covers non-compliance with other laws referred to in section 332(7)(a), subject to the requirement that the finding of non-compliance is undisputed or has attained finality. False information The....