CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 12AA.
7. In section 12AA of the Income-tax Act, in sub-section (3), after the word, brackets and figure "subsection (1)", the words, figures letter and brackets "or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996]"[33 of 1996] shall be inserted with effect from the 1st day of June, 2010.
Notes on Clauses:
Clause 7 of the Bill seeks to amend section 12AA of the Income tax Act relating to procedure for registration of a trust or institution.
Under the existing provision contained in sub-section (3) of the aforesaid section, if the activities of the trust or institution referred to in sub-section (1), which has been granted registration under sub-section (1), are not genuine or are not being carried out in accordance with the objects of the trust or institution, the Commissioner shall, after giving a reasonable opportunity of being heard to the said trust or institution, pass an order in writing cancelling the registration granted under clause (b) of sub-section (1).
It is proposed to amend the said sub-section (3) so as to also provide for cancellation of registration where any trust or institution has obtained registration at any time under section 12A before its amendment.
This amendment will take effect from 1st June, 2010.
