Amendment of section 12AB.
9. In section 12AB of the Income-tax Act,––
(a) in sub-section (1) with effect from the 1st day of October, 2023,––
(A) in clause (b),––
(a) in the opening portion, after the word, brackets and figure “sub-clause (v)”, the words, brackets, letter and figures “or item (B) of sub-clause (vi)” shall be inserted;
(b) in sub-clause (ii), for item (B), the following item shall be substituted, namely:––
“(B) if he is not so satisfied, pass an order in writing,––
(I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancelling its registration;
(II) in a case referred to in sub-clause (iv) or in item (B) of sub-clause (vi) of sub-section (1) of section 12A, rejecting such application,
after affording a reasonable opportunity of being heard;”;
(B) for clause (c), the following clause shall be substituted, namely:––
“(c) where the application is made under item (A) of sub-clause (vi) of the said clause or the application is made under sub-clause (vi) of the said clause, as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought,”;
(b) in sub-section (4), in the Explanation, in clause (f), for the words “attained finality.”, the words “attained finality; or” shall be substituted;
(c) after clause (f), the following clause shall be inserted, namely:––
“(g) the application referred to in clause (ac) of subsection (1) of section 12A is not complete or it contains false or incorrect information.”.
Notes on Clauses:
Clause 9 seeks to amend section 12AB of the Income-tax Act relating to procedure for fresh registration.
It is proposed to amend clause (b) of sub-section (1) of the said section so as to provide that where the application is made under the item (B) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A, the Principal Commissioner or Commissioner shall follow the procedure provided under clause (b) of sub-section (1).
It is further proposed to substitute item (B) of sub-clause (ii) of clause (b) of sub-section (1) of the said section to provide that where the Principal Commissioner or Commissioner not so satisfied about the objects of the trust or institution and the genuineness of its activities and compliance of the requirements, he shall pass an order in writing,––
(I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancelling its registration;
(II) in a case referred to in sub-clause (iv) or in item (B) of sub-clause (vi) of subsection (1) of section 12A, rejecting such application,
after affording a reasonable opportunity of being heard.
It is also proposed to substitute clause (c) of sub-section (1) of the said section to provide that where the application is made under item (A) of sub-clause (vi) of clause (ac) of subsection (1) of section 12A or the application made under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A, as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the trust or institution.
These amendments will take effect from 1st October, 2023.
It is also proposed to insert a new clause (g) to the Explanation to sub-section (4) of the said section so as to provide that “specified violation” shall also include the case where the application referred to in clause (ac) of sub-section (1) of section 12A is not complete or it contains false or incorrect information.
This amendment will take effect from 1st April, 2023.
