Penalty for passing on unreasonable benefits to trustee or specified persons

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.... any other specified person. In order to discourage such misuse of the funds of the trust or institution by specified persons, it is proposed to insert a new section 271AAE in the Act to provide for penalty on trusts or institution under both the regimes which is equal to amount of income applied by such trust or institution for the benefit of specified person where the violation is noticed for th....

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....ase may be, the Assessing Officer may direct that such person shall pay by way of penalty, i) 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 sub-section (3) of section 13 where the violation is noticed for the first time during any previous year; and ii) a sum equal to two hundred percent of the aggregat....