Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    PMLA and Predicate Offenses: Deciphering the Scope of Proceeds of Crime under PMLA: A Supreme Court ...
    Resolution Applicant's Eligibility under the IBC: A Balancing Act Between Stringent Rules and MSME P...
    Case LawsIncome Tax
    Dynamics of Tax Exemption Registrations: A Comprehensive Analysis of ITAT Ahmedabad’s Decision on ...
    Case LawsIncome Tax
    Transfer Pricing Litigation: The Evolving Landscape of Arm's Length Price Determination in India
    Case LawsCentral Excise
    Pre-deposit Compliance in Appeals: Judicial Overreach by CESAT
    Revisiting Shareholder Rights in Securities Law: Deciphering the Bounds of Confidentiality in Corpor...
    Case LawsCorporate Laws
    Professional Conduct in Auditing: Exploring the Jurisdiction and Compliance in Auditor (Chartered Ac...
    Comprehensive Legal Analysis of Jurisdictional Challenges and SEBI's Regulatory Framework in Securit...
    Case LawsIncome Tax
    Revisiting the Scope of Revisionary Powers U/s 263: Assessing the Adequacy of Assessment Procedures ...
    Case LawsVAT / Sales Tax
    The Doctrine of Promissory Estoppel in Governmental Policy Decisions: Tax Incentives and Public Inte...
    Case LawsIncome Tax
    Maintaining the Sanctity of Search and Seizure Procedures: Emphasizing the rigorous compliance with ...
    The Confluence of Insolvency and Limitation Laws: Insights from a NCLAT Decision
    Case LawsIncome Tax
    Analyzing the Tax Implications of Cross-Border Payments: Recognizing the payments as either 'Royalty...
    Case LawsCustoms
    A Judicial Perspective on Duty Assessment and Procedural Fairness in Customs Law: Validity of CBIC C...
    Case LawsIncome Tax
    Non-Delegability of Discretionary Powers in Income Tax Assessments: Administrative Discretion in Spe...
    Case LawsIncome Tax
    Taxation of Domain Registration Services in Godaddy.Com LLC Case: Tax Implications for Digital Serv...
    Reinforcing Fair Administrative Processes in GST Registration Cancellation: An In-Depth Case Study
    Case LawsIndian Laws
    The Arbitration Conundrum: Enforceability of Unstamped Agreements
    Case LawsVAT / Sales Tax
    Reassessing Tax Penalties: HDFC Bank's Challenge under the DVAT Act
    Input Tax Credit Eligibility under GST Legislation: Time-Bound Compliance in GST ITC Cases
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    Case LawsPMLA
    Show AI Summary
    Proceeds of crime: PMLA targets handling of tainted assets even where the person is not named in the predicate offence, scope narrowed for conspiracies.
    Existence of proceeds of crime is a prerequisite for an offence under the PMLA and must be derived from a scheduled offence; the PMLA reaches persons who handle, conceal or possess tainted proceeds even if not named in the predicate offence. Conspiracy under Section 120B becomes a scheduled offence only when the conspiracy aims to commit an offence already listed in the PMLA Schedule, narrowing scheduled-offence scope. Property acquired prior to the scheduled offence cannot be treated as proceeds, whereas disputed acquisitions require trial determination of their linkage to tainted funds.
    Case LawsIBC
    Show AI Summary
    Resolution applicant eligibility under Section 29A clarified; MSME exemption under Section 240A applies at plan submission stage.
    Whether a resolution applicant is disqualified under Section 29A depends on the ineligibility criteria and the timing of assessment; the operative date for eligibility is the submission of the resolution plan, and Section 240A provides an MSME-targeted exemption from certain disqualifications to protect continuity and livelihoods.
    Case LawsIncome Tax
    Show AI Summary
    Tax exemption registration: tribunal ordered reconsideration where delay arose from bona fide reliance on provisional registration and circulars.
    The Tribunal held that rejection of the final registration application under Section 80G for being time barred was improper where the Commissioner did not consider administrative circulars extending filing timelines and the trust's bona fide reliance on provisional registration; the ITAT set aside the order and directed reconsideration with an opportunity to be heard.
    Case LawsIncome Tax
    Show AI Summary
    Arm's Length Principle enforcement: comparables, functional profiling, and admissibility of additional evidence determine transfer pricing outcomes.
    Dispute concerns determination of Arm's Length Price (ALP) for international transactions, focusing on comparable selection, adjustments for functional differences, and functional profiling's effect on ALP reliability. The Tribunal also deals with the admissibility of additional evidence on appeal and scrutiny of changes in benchmarking approaches across assessment years, stressing contemporaneous, consistent documentation and justification for methodological changes while balancing procedural finality and factual completeness.
    Case LawsCentral Excise
    Show AI Summary
    Pre-deposit requirement undermined by tribunal restoration without compliance, raising jurisdictional and laches concerns in excise appeals procedure scrutiny.
    The Tribunal's restoration and allowance of excise appeals without a prior pre-deposit requirement raises whether a lower tribunal may waive mandatory pre-deposit obligations and whether such action aligns with supervisory limits imposed by higher court directives and doctrines like functus officio and res judicata.
    Case LawsSEBI
    Show AI Summary
    Shareholder access to confidential corporate documents affirmed where confidentiality is overstretched, strengthening minority investor protections.
    Minority shareholders are entitled to access corporate documents where confidentiality claims are overstated; confidentiality and privilege cannot be used to withhold information necessary for assessing compliance with securities law. SEBI's settlement framework cannot shield material information from shareholder scrutiny; regulatory processes must balance investigatory integrity with transparency and natural justice. Non compliance with Minimum Public Shareholding norms undermines market integrity and minority rights, and settlements of serious violations require sufficient transparency to protect investor interests.
    Case LawsCorporate Laws
    Show AI Summary
    Retrospective jurisdiction of regulator challenged; effect on auditor liability, standards compliance and sanctions under companies law.
    Allegations of professional misconduct assert auditors failed to comply with statutory audit obligations, disclose material facts, exercise due diligence, obtain necessary information, and identify departures from accepted audit procedures. Appellants challenge the regulator's retrospective jurisdiction, invoke constitutional protection against retrospective penalization, and allege procedural breaches of natural justice; the regulator maintains jurisdiction, contends it afforded hearing opportunities, and asserts substantive non compliance with Standards on Auditing.
    Case LawsSEBI
    Show AI Summary
    Territorial jurisdiction disputes in securities cases shape venue decisions and challenge regulatory settlement revocations and discretion.
    Disputes over venue in securities enforcement pivot on territorial jurisdiction and forum non-conveniens, using cause of action and convenience factors to determine appropriate forum. SEBI's settlement regime under the SEBI (Settlement Proceedings) Regulation 2018 and the regulator's power to revoke settlements raise questions about regulatory discretion, enforceability of negotiated resolutions, and implications for corporate governance and market integrity, while High Courts' supervisory role under Article 226 intersects with statutory enforcement mechanisms.
    Case LawsIncome Tax
    Show AI Summary
    Revisionary powers under Section 263 limited where assessment thoroughly examined transactions and no specific error is shown.
    Scope of revisionary powers under Section 263 is limited where the original assessment shows a detailed examination and allowance of losses; direction for re-examination without specific findings of error prejudicial to revenue is insufficient. Transactions integral to business and carried out as hedging do not fall within the definition of speculative transactions under Section 43(5).
    Case LawsVAT / Sales Tax
    Show AI Summary
    Promissory estoppel prevents withdrawal of promised tax incentives for industrial units that invested in reliance on them.
    The dispute concerns whether the State could withdraw tax incentives by reclassifying areas and thereby affect units that invested relying on those incentives. Applying promissory estoppel, the court determined that promises inducing substantive investment could not be retracted to the detriment of the beneficiaries during the promised exemption period, balancing that protection against the State's public interest prerogative and subsequent structural tax reform.
    Case LawsIncome Tax
    Show AI Summary
    Search and seizure procedural compliance: satisfaction note requirement under section 153C governs validity of assessments.
    Assessments against persons other than the searched individual require a recorded satisfaction by the assessing officer that seized assets or documents belong to that other person; absence of a satisfaction note in the searched person's file invalidates consequential assessments under the search-derived assessment provisions. Determination of the applicable assessment years hinges on whether the assessment period is tied to the date of search, the date satisfaction is recorded, or the date seized material is received, requiring harmonious construction to align enforcement with taxpayer protections.
    Case LawsIBC
    Show AI Summary
    Limitation in insolvency: admissibility requires established debt and default and bars further merits inquiry at admission.
    Where a claim establishes debt and default and the petition is within limitation, the Tribunal's role at the admission stage is limited to admitting the corporate insolvency resolution process without undertaking an extensive merits inquiry into the underlying debt or default.
    Case LawsIncome Tax
    Show AI Summary
    Characterisation of cross-border payments as royalty or service fees determines withholding obligations under tax treaty and domestic law.
    Characterisation of cross-border payments under the Income Tax Act and the India-USA DTAA focused on whether payments to a US non-resident constituted royalty or fees for included services under section 9(1)(vii) and Article 12, whether TDS obligations arose, and whether sections 201(1) and 201(1A) could be invoked; the Karnataka High Court and ITAT concluded the payments were not royalty/fees for included services, services were rendered outside India, the payee lacked an Indian permanent establishment, and therefore withholding obligations did not arise.
    Case LawsCustoms
    Show AI Summary
    Procedural fairness in customs law limits administrative conditions on provisional release, ensuring statutory discretion and fair hearing.
    The court evaluated whether the impugned Circular and order unlawfully limited the adjudicating authority's statutory discretion by imposing conditions on provisional release, and whether those measures violated principles of natural justice; it emphasised that executive instructions may supplement but cannot supplant statutory provisions and that administrative actions must preserve statutory discretion and fair hearing requirements.
    Case LawsIncome Tax
    Show AI Summary
    Non-delegability of discretionary powers: extension of tax audit report time must be granted by assessing officer, not delegate.
    The power to order a special audit and to extend the timeframe for submission of the audit report is vested in the Assessing Officer and must be exercised by that officer alone; administrative convenience cannot justify delegation to the Commissioner. An extension granted by the Commissioner, even if prompted by the AO's recommendation, is inconsistent with the statutory scheme and can render subsequent assessment orders vulnerable to being barred by limitation.
    Case LawsIncome Tax
    Show AI Summary
    Royalty characterization of domain registration fees requires a transfer of proprietary or use rights; mere registrar facilitation does not qualify.
    Whether fees for domain name registration qualify as royalty depends on whether the registrar transfers a proprietary or right-to-use interest; a registrar acting as intermediary under its accreditation agreement that disclaims ownership and does not convey exclusive or transferable rights does not convert registration fees into royalty.
    Case LawsGST
    Show AI Summary
    Natural justice in GST registration: deficient show cause notices require reconsideration and a fresh opportunity to respond.
    Cancellation of GST registration on grounds such as fraud or suppression must comply with natural justice; a show cause notice lacking specific allegations and a decision that does not consider the taxpayer's response constitutes procedural deficiency, necessitating administrative reconsideration with a reasoned notice that permits an adequate reply.
    Case LawsIndian Laws
    Show AI Summary
    Arbitration agreement enforceability tested against stamp duty compliance, affecting admissibility and tribunal jurisdiction.
    The central issue is whether an arbitration agreement in an unstamped instrument is enforceable, engaging the Arbitration Act, Stamp Act and Contract Act and asking if courts must examine only the existence of an arbitration clause or also its validity when stamp duty non compliance is alleged. The text contrasts lines of authority treating non stamping as either a jurisdictional bar that voids enforceability or a curable defect affecting admissibility, and highlights statutory mechanisms for stamping, impoundment, and remediation while mapping the practical consequences for arbitration access and enforcement.
    Case LawsVAT / Sales Tax
    Show AI Summary
    Penalty proportionality: penalties require deceptive conduct and mens rea before applying to disputed tax assessments.
    The decision analyzes penalties under the DVAT framework in relation to sales of repossessed vehicles, stressing that taxability remained unsettled and that penalties require conduct that is false, misleading, or deceptive. It highlights that mens rea is central to quasi criminal tax penalties and that proportionality and reasoned discretion are prerequisites to lawful penal levies; absent those elements, penalty imposition lacks statutory support.
    Case LawsGST
    Show AI Summary
    Input Tax Credit time limits require strict compliance with statutory filing conditions, not relaxation for business constraints.
    The court construes Input Tax Credit as a concession contingent on strict compliance with statutory prerequisites, holding that time-bound procedural conditions operate as substantive preconditions to claiming ITC. The non-obstante clause is given a limited operative scope and does not nullify mandatory temporal conditions; established principles of tax-statute interpretation require literal application of the scheme and adherence to filing timelines despite commercial hardships.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Comparison of section 332 "Application for registration." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      11 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 332 Application for registration

      Income-tax Act, 2025

      At a Glance

      Clause 332 of the Income Tax Bill, 2025 - (Old Version) "Application for registration" for registered non-profit organisations. It sets out who may apply, eligibility conditions, time-limits and procedural steps for grant, rejection or cancellation of registration. It matters to non-profit entities seeking tax-status benefits and to tax administration (Principal Commissioner/Commissioner). Effective dates or commencement details: Not stated in the document.

      Background & Scope

      Statutory hook: Clause 332, Part B (Special provisions for registered non-profit organisation), I-Registration. The provision prescribes which entities may apply for registration to claim benefits under the Part, the eligibility conditions, procedural timelines for application and decision, and consequences of delay. Definitions for terms used in the Clause (e.g., "charitable purposes" referencing section 2(23)) are limited to reference; the Clause relies on other statutory definitions. Any broader legislative context or explanatory notes: Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      The Clause applies to specified categories of persons who may apply for registration to claim benefits as a "registered non-profit organisation": (a) public trusts; (b) societies registered under the Societies Registration Act, 1860 or any law in India; (c) companies registered u/s 8 of the Companies Act, 2013 or companies previously registered u/s 25 of the 1956 Act and deemed registered u/s 465(2)(g) of the Companies Act, 2013; (d) universities or other educational institutions affiliated or recognised by Government; (e) institutions financed wholly or partly by Government or a local authority; (f) persons listed in specified entries of Schedules III and VII; and (g) other persons notified by the Board.

      Eligibility ingredients (sub-section (2)): (a) constitution/registration/incorporation in India for carrying out one or more charitable purposes as referred to in section 2(23) or one or more public religious purposes, or both; and (b) properties held under an irrevocable trust for the benefit of the general public - either wholly for charitable or religious purposes, or partly for such purposes in India if constituted prior to commencement of the Income-tax Act, 1961.

      Interpretation

      The Clause frames eligibility by reference to existing statutory definitions (section 2(23)) rather than redefining charitable or religious purposes, indicating reliance on established interpretive tests under the Act. The requirement that properties be "held under an irrevocable trust for the benefit of the general public" is a substantive condition: the trust character and public-benefit orientation are explicit statutory prerequisites. The decision-making role is vested in the Principal Commissioner or Commissioner, who must make enquiries and call for documents to assess "genuineness of activities" and compliance with other laws "material for the purpose of achieving its objects." Legislative intent beyond these textually expressed aims: Not stated in the document.

      Exceptions/Provisos

      The Clause contains temporal and conditional permutations in the Table (sub-section (3)) governing when applications must be made, and the period of validity if registration is granted. Notable exceptions/conditions: provisional registration is available where activities have not commenced (Table Sl. No. 1). Sub-section (4) permits condonation of delay by the Principal Commissioner/Commissioner for reasonable cause. Sub-section (5) substitutes a longer validity (ten years instead of five) for certain lower-income applicants (income not exceeding Rs. 5 crore in each of two preceding tax years). Liability for tax on accreted income u/s 352 applies where certain late applications are not condoned (sub-section (6)). Specific provisos limiting scope of object modifications (see Table Sl. No. 7) are not present in the Old Version beyond the requirement to notify within 30 days; further nuance: Not stated in the document.

      Illustrations

      • Newly formed society formed in April seeking registration for tax year starting 1 April: it may apply "at any time during the tax year beginning from which registration is sought"; where activities have not commenced and provisional registration is sought, the Commissioner must decide within three months from end of month of application (Table Sl. No.1).
      • An established trust whose activities have commenced and which has never been registered may apply during the relevant tax year; the Commissioner has six months from end of the quarter in which application is made to pass order; registration, if granted, is valid for five tax years (Table Sl. No.2).
      • A registered non-profit that adopts a modification of objects must notify within 30 days of adoption; the Commissioner may, after enquiring, reject and cancel registration in such cases if not satisfied (Table Sl. No.7; sub-section (7)).

      Interplay

      The Clause expressly references section 2(23) (definition of charitable purposes), u/s 465(2)(g) of the Companies Act, 2013, and section 352 (tax on accreted income) - indicating interplay with substantive definitions and penalty provisions elsewhere. It also refers to "requirements of any other law as are material for the purpose of achieving its objects," signalling cross-compliance checks with other regulatory regimes. Specific cross-references to Rules, Notifications or Circulars beyond "as prescribed" for form and manner: Not stated in the document.

      Practical Implications

      • Compliance and risk areas: Applicants must ensure constitutional documents and asset-holding arrangements evidence an irrevocable trust for public benefit; timely filing is crucial because delays can attract liability u/s 352 if not condoned. Entities altering objects must be alert to the 30-day notification requirement and risk cancellation if changes do not conform to registration conditions.
      • Record-keeping/evidence: The Commissioner is empowered to call for documents and enquiries into genuineness and compliance; applicants should retain foundational documents (trust deed, registration/incorporation records, objects clause, proof of irrevocability of asset holding), evidence of activities, financial statements (income thresholds are relevant for extended validity), and records of communications with funding authorities if government-funded.

      Key Takeaways

      • Clause 332 prescribes categories of entities eligible to seek registration as non-profit organisations and ties benefits to structural and trust-based conditions.
      • Eligibility requires both charitable/religious objective(s) (per section 2(23)) and assets held under an irrevocable trust for public benefit; temporal limitations apply where assets are only partly for such purposes.
      • The statutory Table creates differentiated filing windows, decision timelines and validity periods depending on commencement of activities and prior registration status; provisional registration and renewal mechanics are provided.
      • Condonation of delayed filings is discretionary and taxable consequences (section 352) follow uncured delay for certain categories.
      • The Principal Commissioner/Commissioner has broad fact-finding powers and may reject or cancel registration following a hearing if not satisfied about genuineness or legal compliance.
      • Lower-income applicants (<= Rs. 5 crore in each of two preceding years) may receive extended registration validity (ten years) in specified situations.
      • Form and manner of orders and applications are to be prescribed; specific rules or forms are not contained in the Clause itself.

      Differences between Section 332 of the Income-tax Act, 2025 and Clause 332 of the Income Tax Bill, 2025 - Old Version

      • Sub-section (2)(a): Clause 332 (Old) expressly includes "or both" after charitable and public religious purposes; Section 332 (Act) omits "or both" (it states "for carrying out one or more charitable purposes ... or one or more public religious purposes").
        • Practical impact: potential interpretive clarity in the Bill (Old) that combined charitable and religious purposes qualify; the Act's omission may invite question but likely not change substantive eligibility where both purposes are present-however the omission reduces textual explicitness.
      • Sub-section (3) procedural reference: The Bill (Old) requires following sub-sections (6) and (7); the Act requires following "the procedure provided in this section."
        • Practical impact: the Act's language is broader and may encompass additional subsections (e.g., 4,5) explicitly; the Old Bill's cross-reference is narrower but functionally the procedure invoked appears to align with the same subsections involved in decision-making.
      • Table - Sl. No.1 decision timeline: Clause 332 (Old) sets time-limit for passing order as "Three months from the end of the month in which application is made"; Section 332 (Act) reduces this to "One month from the end of the month in which application is made."
        • Practical impact: the Act imposes a shorter decision timeline for provisional registration where activities have not commenced, increasing administrative speed and pressure on the tax authority; applicants benefit from quicker certainty.
      • Table - Sl. No.7 scope: Clause 332 (Old) applies to an applicant "being a registered non-profit organisation, has adopted or undertaken modification of its objects." The Act narrows this trigger to modifications "which do not conform to the conditions of registration."
        • Practical impact: the Act narrows the category subject to immediate application requirement to object changes that are non-conforming, reducing compliance burden/risk of cancellation for any object modification that remains within registration conditions.
      • Substantive sequencing in sub-section (7): The Old Bill frames the enquiry "as to the compliance of such requirements of any other law ... and the genuineness of activities" while the Act frames enquiries to satisfy about "genuineness of activities, and the compliance of such requirements ... as are material."
        • Practical impact: largely stylistic, but the Act emphasises genuineness first and limits the scope of other-law compliance to requirements material to achieving objects - potentially narrowing the inquiry's scope.
      • Form of orders: Clause 332 (Old) uses "as prescribed"; Section 332 (Act) uses "as may be prescribed."
        • Practical impact: nominal; no substantive change evident.

      Action Points

      • Entities planning to seek registration should verify that their objects fall within section 2(23) and/or public religious purposes, ensure assets are held under an irrevocable trust for public benefit, and prepare documentary evidence in advance.
      • Registered organisations contemplating modification of objects should assess whether changes "conform to the conditions of registration" (per the Act) to determine the 30-day filing obligation and risk of cancellation.
      • Smaller organisations (income <= Rs. 5 crore in each of the two preceding years) should document income history to avail potential ten-year validity in designated cases.
      • Monitor the prescribed forms and order formats when notified, and be prepared for enquiries from the Principal Commissioner/Commissioner.

      Full Text:

      Section 332 Application for registration

      Topics

      ActsIncome Tax