Provisions of this Chapter not to apply in certain cases.
102. (1) The provisions of this Chapter shall not apply to any person who—
(a) holds any business under trust, notwithstanding any specific direction that—
(i) the business shall form part of the corpus of such person; or
(ii) the income from the business shall be applied only for charitable activity;
(b) fails to comply with the conditions specified in section 97;
(c) ceases to be a non-profit organisation at any time during the financial year, irrespective of registration granted under sub-section (4) of section 98;
(d) carries on any business if it is not a business incidental to charitable activity.
(2) Without prejudice to sub-section (1), the non-profit organisation which ceases to be so due to conversion, merger or dissolution as referred to in sub-section (1) of section 101 shall be liable to income-tax in respect of its net worth in accordance with that section.
(3) The total income of any person falling under clauses (a), (b), (c) or clause (d) of sub-section (1) shall be computed in accordance with the other provisions of this Code.
