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
    Ensuring Procedural Fairness in GST Registration Cancellation: Analysis of a High Court Ruling
    Case LawsService Tax
    The Intersection of International Business and Service Tax: The Export of Services Under Indian Serv...
    Case LawsIncome Tax
    Jurisdictional Challenges in Tax Assessments: Insights from a Recent ITAT Decision
    Case LawsIncome Tax
    High Court Rules on the Invalidity of Reassessment Notices Issued to a Deceased Person
    From Denial to Grant: A Legal Examination of Bail in Money Laundering Allegations
    GST Registration Cancellation and the Rule of Law: Insights from a Key Bombay High Court Judgment
    Case LawsCentral Excise
    Excise Duty Valuation and Limitation Period Extension: A Legal Analysis of the Supreme Court Judgmen...
    Interpreting Limitation and Acknowledgment of Debt under the IBC: A Detailed Legal Analysis
    Case LawsIncome Tax
    Long-Term Capital Gains and Unexplained Cash Credits in Stock Transactions: A Legal Perspective
    Case LawsIncome Tax
    Judicial Approach in Transfer Pricing and PE Attribution: Analysis of a Landmark Case: Legal Perspec...
    Case LawsIncome Tax
    Scrutinizing the Application of Mind in Tax Assessments: Examining the Role of ACIT while granting a...
    Case LawsIncome Tax
    TDS Obligations and DTAA: Clarifying Tax Jurisdiction in International Telecom Services
    Judicial Scrutiny of Arrest Powers under GST Legislation: Balancing Individual Rights and Statutory ...
    Navigating the Legal Maze: Electricity Dues vs. Insolvency Proceedings
    Case LawsIncome Tax
    Distinction Between Business Income and Deemed Income in Income Tax Assessments: Higher rate of tax ...
    Case LawsCustoms
    From Valuation to Penalty and redemption fine: Legal Implications of Importing Restricted Goods in C...
    Case LawsService Tax
    Analyzing the Implications of Delay in Tax Adjudication: A Case Study
    Case LawsCorporate Laws
    Secured Creditors and Asset Disposal in Liquidation: High Court's Balancing Act
    Case LawsIncome Tax
    Analysis of ITAT's Decision on Surplus Stock Taxation
    Contractual Compliance and GST Reimbursement: Unpacking a Landmark Judgment"
❯❯
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 LawsGST
    Show AI Summary
    Procedural fairness in GST registration: specific, detailed show cause notices are required to protect taxpayer hearing rights.
    Cancellation of GST registration requires adherence to procedural fairness, with show cause notices containing precise and detailed allegations so a taxpayer can mount an effective defence; technical portal limitations do not excuse failures to particularise allegations and authorities should issue a fresh detailed notice where the initial notice is defective.
    Case LawsService Tax
    Show AI Summary
    Export of service: services benefiting a foreign recipient's overseas business can qualify as exports, affecting service tax liability.
    Whether commissions earned by an Indian sub agent for procuring orders for a foreign principal qualify as export of service under the Export of Service Rules 2005 depends on the destination based consumption tax concept: the place where benefit accrues and the location of the service recipient determine export character, and services benefiting a foreign recipient's overseas business that meet the Rules' conditions are treated as exports and outside domestic service tax.
    Case LawsIncome Tax
    Show AI Summary
    Jurisdictional validity of tax notice: lack of proper jurisdiction can vitiate assessment proceedings and nullify further action.
    The dominant operative point is that a valid scrutiny assessment under Section 143(2) requires issuance by an officer with lawful jurisdiction determined by income thresholds and administrative instructions; failure in jurisdictional competence can render the notice and ensuing assessment proceedings invalid. Procedural fairness-specifically the opportunity to be heard-is a corollary concern, and while issues regarding additions under Section 69A and the tax effect of Section 115BBE are raised, they become academic if the initiation itself is found jurisdictionally flawed.
    Case LawsIncome Tax
    Show AI Summary
    Validity of reassessment notices: notices issued to a deceased person are void and must be directed to the correct legal entity.
    The High Court held that reassessment notices issued in the name of a deceased assessee are null and void, constituting substantive illegality when directed to a non-existent person; the court emphasized that the correct legal entity must be addressed, that the legal heir's communications and filings were material, and that procedural protections and statutory reopening procedures cannot be bypassed due to administrative or IT constraints.
    Case LawsPMLA
    Show AI Summary
    Bail in money laundering cases-personal liberty and pretrial custody can outweigh investigatory severity when trial is pending.
    The dispute examines bail law in money laundering allegations where the High Court denied bail based on the statutory construction of money laundering and the concept of proceeds of crime, treating the accused as central to an alleged conspiracy; by contrast, the higher court emphasised personal liberty, the duration of pretrial custody, the absence of trial commencement, and the accused's non-inclusion as an accused in the prosecuting agency's charge-sheet, applying the principle of bail over continued detention within the statutory bail regime for money laundering.
    Case LawsGST
    Show AI Summary
    Natural justice requires specific show cause particulars and precludes vague retrospective GST registration cancellations.
    The court found the show cause notice to be vague and deficient in particulars, resulting in a breach of natural justice because the taxpayer was not provided relevant material or evidence. It held that retrospective cancellation without specific mention in the notice lacked legal support and stressed that administrative authorities must avoid arbitrary action, provide clear particulars, and adhere to procedural and statutory norms under the GST regime.
    Case LawsCentral Excise
    Show AI Summary
    Excise duty valuation: inclusion of customer duty benefits affects assessable value; intent determines extended limitation applicability.
    Excise duty valuation focuses on whether benefits from transferred advance licences are includable in the transaction value for assessable value, assessed against statutory value principles and precedent. The extended limitation regime requires proof of deliberate evasion-fraud, collusion, willful misstatement, or suppression-and the Court distinguishes honest legal interpretation from intentional suppression, emphasising mens rea and conduct when applying the extended period to valuation disputes.
    Case LawsIBC
    Show AI Summary
    Acknowledgment of debt in corporate records can extend limitation, enabling insolvency petitions after prior procedural stays.
    The tribunal addressed whether acknowledgments in financial statements and corporate conduct extend the limitation period under the Limitation Act for insolvency petitions, factoring in statutory exclusion of time spent under prior SICA proceedings. It held that a holistic appraisal of balance sheet entries, director's reports and the debtor's conduct can constitute an implicit acknowledgment of debt within the limitation period, thereby operating to extend time for filing an insolvency application.
    Case LawsIncome Tax
    Show AI Summary
    Long-term capital gains preserved where transaction records establish genuineness; mere broker misconduct is insufficient evidence.
    The issue is whether gains from sale of low-priced shares are long-term capital gains or unexplained cash credits under Section 68. The authorities suspected accommodation entries via a broker with a tainted history, but transaction documents-bills, bank payments and contract notes-were held to establish genuineness. Mere suspicion of broker misconduct was deemed insufficient without direct evidence linking the assessee to contrived entries; evidentiary standards and fair hearing obligations were decisive.
    Case LawsIncome Tax
    Show AI Summary
    Permanent establishment attribution: precedent-driven analysis limits taxable profit allocation to where core value is created in digital services.
    The principal issue is attribution of profits to a Permanent Establishment for cross-border digital reservation services, requiring a fact-sensitive analysis of where core business activities and value creation occur; judicial reasoning relied on materially similar precedent to determine the appropriate share of revenue attributable to the PE, stressing that a mere business connection or digital presence does not automatically justify full profit allocation to the jurisdiction and that clear tracing of value creation is essential to avoid double taxation.
    Case LawsIncome Tax
    Show AI Summary
    Application of mind in tax approvals: inadequate ACIT scrutiny under Section 153D can invalidate assessments.
    The core issue is whether the ACIT, when granting approval under Section 153D, performed a genuine application of mind by scrutinising assessment records and search material; the Tribunal and High Court found the approval lacked adequate examination, leading to inconsistencies between additions made by the assessing officer and the assessed income, and rendering the assessment unreliable. The matter was treated as factual rather than presenting a substantial question of law.
    Case LawsIncome Tax
    Show AI Summary
    Royalty characterisation: cross-border telecom payments not taxable as royalty, limiting TDS and extraterritorial jurisdiction.
    Payments by an Indian telecom operator to non-resident carriers for interconnectivity and capacity transfers are not to be characterised as royalty under the applicable DTAA and therefore do not attract TDS; DTAA interpretation governs characterization, Indian jurisdiction is limited over extra territorial income where the foreign entities lack a taxable presence, and retrospective amendments do not impose tax on past transactions compliant with the law at the time.
    Case LawsGST
    Show AI Summary
    Duty to comply with GST summons: noncompliance can permit statutory enforcement while safeguards against arbitrary arrest remain.
    The Supreme Court held that individuals summoned under the GST regime have an enforceable duty to comply with lawful summons; non compliance may trigger statutory enforcement, including arrest where prescribed conditions are met. The Court limited judicial interference in administrative enforcement, underscoring that arrest powers under the CGST Act must be exercised within statutory conditions and subject to safeguards against arbitrary action, while permitting authorities to proceed if respondents fail to comply after a final opportunity.
    Case LawsIBC
    Show AI Summary
    Priority of electricity dues questioned as insolvency rules may alter creditor ranking during corporate liquidation.
    The central issue is whether electricity dues constitute a security interest that makes the supplier a secured creditor with a first charge on assets, or whether such dues are operational/governmental claims subordinated by the IBC waterfall; this turns on registration and formal requirements for security interests and on reconciling the Electricity Act's recovery regime with the IBC's overriding, comprehensive insolvency priority scheme.
    Case LawsIncome Tax
    Show AI Summary
    Deemed income classification denied where surrendered receipts are linked to business activities, avoiding higher tax rate.
    Where surrendered cash, advances and stock discrepancies identified in a survey are linked to ordinary business activities and the assessee supplies specific explanations of source and nexus, the deeming provisions for unexplained investments and unrecorded ownership do not automatically apply; accordingly the higher-rate taxation applicable to incomes classified as deemed income is inapplicable and the amounts are treated as business income for tax purposes.
    Case LawsCustoms
    Show AI Summary
    Redemption fine reduction for restricted imports emphasises proportionality in customs penalty and valuation disputes practice.
    Valuation of imported used multifunction machines was reassessed by a Chartered Engineer, supporting an enhanced customs value while prompting scrutiny of their classification as restricted and the legal basis for detention. The Tribunal evaluated confiscation limits and applied proportionality in monetary sanctions, reducing the imposed penalty and redemption fine to specified proportions of the enhanced value, thereby illustrating judicial discretion in balancing enforcement with fairness in customs adjudication.
    Case LawsService Tax
    Show AI Summary
    Delay in tax adjudication undermines statutory timeframe and can violate principles of natural justice, affecting taxpayers' rights.
    Inordinate delay in adjudicating a service tax show cause notice raised whether such delay contravened the statutory timeframe under Section 73 and violated principles of natural justice; the delay of about a decade, despite an early response by the taxpayer, was characterised as inordinate and prejudicial, inconsistent with the statutory aim of prompt determination and established precedents requiring proceedings to conclude within a reasonable period.
    Case LawsCorporate Laws
    Show AI Summary
    Secured creditor priority upheld; asset protection costs initially borne by creditors and rival claims sent to the specialized tribunal for adjudication.
    The court transferred disputes over assets of a company in liquidation to the specialized insolvency tribunal for expedited adjudication, affirmed the priority of secured creditors while permitting other claimants to present possessory or contractual claims before the tribunal, and ordered that interim asset protection expenses be initially borne by secured creditors but remain recoverable as part of their claims.
    Case LawsIncome Tax
    Show AI Summary
    Surplus stock classification: accounting linkage to business determines treatment as business income over unexplained investment.
    Classification of surplus stock found during a section 133A survey depends on its nexus with ordinary trading and documentary accounting. Where excess inventory is recorded in the stock register and credited to partners' capital account, these accounting entries indicate it forms part of regular business stock and support treatment as business income rather than unexplained investment under section 69B, affecting applicability of special tax treatment under section 115BBE.
    Case LawsGST
    Show AI Summary
    GST reimbursement entitlement affirmed for contract wide transactions, requiring payment with statutory interest and retrospective calculation.
    The court construed amended contract clauses to cover GST impact on both direct and indirect transactions, concluding that the implementing agency's cessation of reimbursements and retrospective recoveries breached contractual promises and principles of promissory estoppel and Article 14, giving rise to an entitlement to reimbursement of withheld GST sums with statutory interest and a court directed timeline for calculation and payment.

    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