Section 445 — Benefits to related persons

If during any proceedings under this Act, it is found that a person being a
registered non-profit organisation has any specified income which is charge-
able to tax as per section 337 (Table: Sl. No. 2), the Assessing Officer may impose
on such person, a penalty of—
9. Omitted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its omission, section 443 read as
under :
“443. Penalty in respect of certain income.— (1) The Assessing Officer or the Joint Commis -
sioner (Appeals) or Commissioner (Appeals) may impose a penalty of 10% of the tax payable
under section 195(1)(i), on an assessee if the income determined in his case for any tax year
includes any income referred to in section 102, 103, 104, 105 or 106.
(2) The penalty under sub-section (1) shall be payable in addition to the tax payable under
section 195.
(3) No penalty shall be levied on income referred to in section 102, 103, 104, 105 or 106 to
the extent such income has been included by the assessee in the return of income furnished
under section 263 and the tax as per section 195(1)(i) has been paid on or before the end of
the relevant tax year.
(4) No penalty under section 439 shall be imposed upon the assessee in respect of income
referred to in sub-section (1).”
( a) a sum equal to the aggregate amount of income applied, directly or in -
directly, by such person, for the benefit of any related person referred to
in section 355(h), if the violation is noticed for the first time during any
tax year; and
( b) a sum equal to 200% of the aggregate amount of income of such person
applied, directly or indirectly, by that person for the benefit of any per-
son referred to in section 355(h), if the violation is noticed again in any
subsequent tax year.