Section - 271AAE (of Income Tax Act, 1961), Benefits to related persons

Without prejudice to any other provision of this Chapter, if during any proceedings under this Act, it is found that a person, being any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10 (of Income Tax Act, 1961), or any trust or institution referred to in section 11 (of Income Tax Act, 1961) has violated the provisions of the twenty-first proviso to clause (23C) of section 10 (of Income Tax Act, 1961), or clause (c) of sub-section (1) of section 13 (of Income Tax Act, 1961), as the case may be, the Assessing Officer may direct that such person shall pay by way of penalty—

(a) 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 (of Income Tax Act, 1961), where the violation is noticed for the first time during any previous year; and

(b) a sum equal to two hundred per cent of the aggregate amount of income of such person applied, directly or indirectly, by that person, for the benefit of any person referred to in sub-section (3) of section 13 (of Income Tax Act, 1961), where violation is noticed again in any subsequent previous year.