12aa-80g Power Point Presentation (Compatibility Mode)

ABIDS – HIMAYATNAGAR CPE STUDY Tuesday, December 30, 2008
CIRCLE OF HYDERABAD BRANCH OF

SIRC OF ICAI
REGISTRATION OF
CHARITABLE &
RELIGIOUS
INSTITUTIONS u/s.
12AA / APPROVAL u/s
80G(5)(vi).
¾ Provisions of section 12 AA prescribe a

detailed procedure for registration of a trust
or an institution which is engaged in the
pursuit of religious or charitable purposes.
A trust or institution so registered is entitled
to exemption of its income as described u/s.
11 & 12 of the Act
Speaker: V RAVULAPALLI-FCA 1
SIRC OF ICAI
¾ In other words, exemption in respect of

the income as envisaged u/s. 11 & 12 is
available only if a trust or an institution,
engaged in the pursuit of charitable or
religious purposes, is granted
registration u/s. 12AA(1).
¾ One may ask if the Income Tax Act is

primarily an instrument of taxation,
taxation
why should it contain a detailed scheme
of provisions granting exemption from
taxation
It is, therefore, necessary to understand the

basic philosophy and reasons behind the
scheme of exemptions as contained in the
Income Tax Act.
i. The Founding
Th F di fathers
f th off our country
t perceived
i d
independent India as, a Welfare state whose
concerns were not confined to law and order,
defense or international relations.
ii. The Scheme of directive principles of state policy,

as enshrined in our constitution, postulates that
the state shall strive for socio-
socio-economic justice
and upliftment of its people in general and of those
belonging to the weaker and under privileged
sections of the society, in particular.
SIRC OF ICAI
iii. The farmers of our constitution were

also well aware that a newlyy born
independent country may not have
the requisite resources to achieve
these objectives and that privately
owned resources were also required
to be channelised into social charity.
charity
iv. The Income Tax Act was also

conceived, among other things as an
instrument of socio-
socio-economic justice
and therefore,
and, therefore it did incorporate
certain provisions to promote the
cause of socio
socio--economic justice and
upliftment by providing directional
thrust by way of tax incentives, like;
exemption and deduction
SIRC OF ICAI
v. In a newly born independent country,

lacking in adequate resources, charity
and socio economic change were
possible only through private
participation needed an encouragement
in the form of statute based tax
incentives.
vi. The p
provisions,, intended to promote
p the
cause of social welfare, benevolence
and charity, are thus found at different
places in the Income Tax Act.
vii. Certain provisions in section 10,11 & 12

and numerous deductions under chapter
VI--A, therefore, should be appreciated
VI
in the light of the fact that Income Tax
Act is not only an instrument of taxation
but it is also intended to act as an
instrument of socio-
socio-economic change.
SIRC OF ICAI
AS REGARDS THE EXEMPTION

FOR A TRUST OR INSTITUTION
ENGAGED IN THE PURSUIT OF
RELIGIOUS PURPOSES, THE
PHILOSOPHY AND REASONS
THEREFOR CAN AGAIN BE
FOUND IN OUR CONSTITUTION.
i. The farmers of our constitution declared

India to be a secular state in which
people of all faiths and beliefs have a
fundamental right to profess and
propagate their religions while the state
was supposed to have neither any
official religion, nor to support or
encourage any particular religion.
ii. All religions, therefore, were allowed a

level playing field without any favour or
discrimination
SIRC OF ICAI
iii. While no particular religion was to be

shown any favor, as a measure of
neutrality, religious trust or institution,
irrespective of their faith, had to be
uniformly granted exemption under the
Income Tax Act.
Exemption of Income stipulated u/s. 11 &

12, on the strength of registration, thus
conforms to the Intended charitable and
religious endeavor by private participants.
Having touched upon the basic postulates

behind the philosophy of exemption, we
shall now deal with the provisions
g g registration
regarding g u/s.
/ 12AA and
approval u/s 80G.
SIRC OF ICAI
As already mentioned, the income of any

trust or institution created wholly for
charitable or religious purposes, qualifies
for exemption from tax on the basis of
registration u/s. 12AA and subject to
f f
fulfillment off certain conditions as
stipulated in the provisions of chapter.
III.
The charitable ppurposes

p or the religious
g
purposes, which constitute the basic tests
for registration and consequential
exemption have, however, not been
exhaustively or exclusively defined in the
Act.
• Section 2(15) of the Act defines the

expression “ Charitable purposes” in an
inclusive manner to include –
i. Relieff to poor,
ii. Education
iii. Medical relief, and
iv. Advancement of any other object of
generall public
bli utility.
tilit
SIRC OF ICAI
The latest test i.e, advancement of any

other object of general public utility is of
wide important as much as the term is
open to variety of interpretations:
¾ Though,
g , it is clear that the object
j has to
be of general public utility and in that
sense the trust or institution has to cater
to the public in general, the term utility
should not be understood in the sense of
utilitarianism or usefulness as professed
by Jermy Bentham or John Stuart Mill.
The utility, therefore, has to be perceived
in conjunction with charity and not in
terms of consumerism implying utility.
¾ The trust or institution seeking

registration for exemption should not be
for the benefit of a group or a class of
individuals. However, charity to a
particular community or section of
society, by the sheer number of
beneficiaries involved, may be perceived
as charitable
¾ Common quality of public or impersonal
in nature should dictate the activity.
¾ The charity should be unselfish/without
quid pro quo and it should be based on
altruistic considerations.
SIRC OF ICAI
‘Religious purposes’ have, however, not

been defined at all in the Act. However,
based on the judicial decisions, a few
objects, which constitute religious
purposes,
purposes can be enumerated.
enumerated Such as- as-
Providing for establishment and worship

of presiding deity. This also includes
maintenance of Mosque,
q , Dargahg and
Seminaries etc.
Construction of Temples, Mosque,
Churches or other places of worship and
prayer halls
Provision for teaching religious texts or

scriptures and provision for recital thereof.
States like Tamil Nadu, Andhra Pradesh, Kerala

and Maharashtra have laws covering g religious
g
endowments.
A religious endowment covered by such laws

can, in most of the cases, be treated as a
public religious one. However, the list of
religious purposes as discussed, is not
exhaustive and one has to really examine the
real nature of activities on the ground to come
to definite conclusion.
SIRC OF ICAI
Having appreciated the fact that a trust or

institution created wholly for religious or
charitable purposes, is eligible for
registration u/s. 12AA and having
understood the implication of charitable
and religious purposes, we shall proceed
to analyze the procedure for registration.
APPLICATION FOR REGISTRATION.

Section 12A(1)(a) requires an
application in the prescribed form to be made
seeking registration.
• This application in accordance with Rule 17 A
and in Form No. 10A has to be made in
duplicate
d li t within ithi the
th financial
fi i l year from
f the
th
date of creation of the trust or institution.
• The Delay in application can be condoned by
the Commissioner/Director of Income Tax for
the reasons to be recorded in writing and in
case the delay is not condoned but the
Commissioner / Director of Income Tax is
otherwise satisfied regarding the eligibility, the
registration can be granted with the first day of
the financial year in which the application is
made.
SIRC OF ICAI
• The registration
g is g
granted from the first
day of the financial year because the
taxability or non-
non-taxability will be for a
previous year as a whole which begins
from the first day of the financial year.
• The application in form No. 10A (to be

filed in duplicate) has to accompany-
accompany-
(i) Original copy of the deed or
instrument of creation or a certified
copy in lieu thereof,
thereof
(ii) Where the trust/institution has been
in existence prior to the financial
year in which application is made,
two copies of the accounts for the
prior year or years, as the case may
be, not exceeding for more than
three years.
SIRC OF ICAI
• The procedure for registration is

contained in section 12AA(1):
- The Commissioner may call for the
necessary documents/ information to
satisfy himself about the genuineness of
the existence and the activities of the
trust/institution,
- He can also make such enquiries as he
may deem fit. The assessing Officer
should not make any enquiries unless
they are mandated by the CIT/DIT.
- An order in writing granting or refusing the
registration shall be passed within six months
from the end of the month in which the
application is made.
Role of the Assessing Officer:

When the application seeking
registration is received, it may be
referred to the Assessing Officer for
necessary scrutiny and report.
report The
Assessing Officer should, therefore –
(i) Go through the deed or instrument of

creation so as to ascertain,
ascertain whether the
objects are such as would render the
applicant eligible for registration,
SIRC OF ICAI
(ii) Whether the charitable objects are certain or

vague,
(iii) Whether the objects are mixed i.e, partly
religious and partly charitable. This aspect
will be particularly important in the context
of approval u/s. 80G(5)(vi).
(iv) Whether the deed or instrument of creation
contains investment clause, dissolution or
winding up clause, amendment clause, non non--
benefit of specified persons u/s. 13(1)(c)
clause, irrevocability clause or not and the
members of general public as beneficiaries
are spelt out or not.
• The analysis of the accounts,

accompanying the application should be
made to find out as to whether or not,
income in the past has been applied for
charity.
charity
• Whether returns were filed, and in case
returns were not filed, though required to
be filed, feasibility of action under section
272A(2)(e) read with section 139(4A)
may be examined.
SIRC OF ICAI
The registration entitling the applicant

trust or institution for examination is not
a perpetual benefitf and it is subject to
fulfillment of certain conditions. Any
infringement or contravention of these
conditions may entail forfeiture of
exemption.
p
Forfeiture of exemption.
There are certain provisions/conditions
stipulated in the Act, the infringement or
contravention of which, may lead to
p
forfeiture of exemption These are –
Contravention of the provisions of

section 11(2):
Every trust or institution registered
u/s 12AA is required to apply 85% of its
u/s.12AA,
income for charitable or religious
purposes. Capital outlays will also qualify
as application for reckoning this
percentage.
SIRC OF ICAI
In case, this specified percentage is not

applied, the trust or institution has to file
a notice in Form No. 10 for
f accumulation
of income or setting apart income for
specified purposes. This notice has to be
filed before the due date, as prescribed
u/s.
/ 139(1)( ) and the over all limit for
utilization of such accumulated income
cannot exceed 5 years
In the event of any failure to apply the

specified percentage and at the same
time failure to file the notice of
accumulation, the Assessing Officer can
deny the benefit of exemption.
exemption These
provisions, though apparently very
potent, do not have the required teeth.
Vide Board’s circular No. 273 dated
03.06.1980,, the CIT/DIT have been
03.06.1980
empowered d to
t condone
d the
th delay
d l in
i filing
fili
the notice of accumulation in Form
No.10.
SIRC OF ICAI
Besides, in the case of Nagpur Hotels

Association – 247 ITR – 201, the Apex
Court has held, that such a notice can be
filed before the Assessing Officer finalizes
the assessment. Thus, in reality, the
submission of notice can travel beyond
the due date,, prescribed
p u/s.
/ 139(1).
( )
The income so accumulated, has to

be invested in accordance with the
modes and forms of investment, as
specified u/s. 11(5).

Section 11(3).
If income accumulated is applied for the
purposes other than charitable or
religious or it ceases to remain invested
in any form or mode, specified u/s.
11(5), the benefit of exemption can be
forfeited.
SIRC OF ICAI

section 11(5).
Provisions of Sec. 11(5) prescribe the
forms and modes of investments and in
case there is a deviation, the benefit of
exemption can be forfeited.
The rationale behind prescribing the modes and

forms of investments is that the funds of a
charitable institution, which are essentially
meant for charity, should not be utilized for
promotion of private interests, nor should they
be
b exposed d to
t high
hi h risk
i k areas. The
Th Assessing
A i
Officers shall be advised to call for original
instruments of investments to satisfy that the
investments are strictly in accordance with the
modes and forms prescribed under the
provisions Besides,
provisions. Besides they should also check the
instruments as to whether or not they are
endorsed or hypothecated to banks or other
financial institutions for the interests other than
those of the assessee institution.
SIRC OF ICAI
Contravention of the provisions of Sec.

13(1)(c).
The provisions clearly prohibit any benefit
accruing or arising to the persons specified in
section 13(3). In case any benefit direct or
indirect flows to these specified persons, the
exemption can be forfeited.
Forfeiture of exemption in the above

circumstances i.e., under the provisions of
section 11 & 13 is only a temporary
disability for a particular assessment year
or years. This forfeiture does not
obliterate the registration granted u/s.
12AA.
Cancellation of Registration.
A new provision i.e. Sub-
Sub-section (3) of
section 12AA has been inserted w.e.f. 1st
October 2004, whereby power to cancel
the registration,
g , once granted,
g , has been
conferred on the CIT/DIT. The
registration can be cancelled, if the CIT is
satisfied that –
(i) The activities of the trust/institution
are not genuine,
genuine or
(ii) Are not being carried out in
accordance with the objects of the
trust or institution
SIRC OF ICAI
An order cancelling the registration has to be in

writing and it can be passed only after
affording a fair and reasonable opportunity to
the trust/institution concerned.
Approval under section 80G.

¾ Approval u/s. 80G(5)(vi) is primarily
given to any trust or institution whose
income is not liable for inclusion in its
t t l iincome. IIn other
total th words,
d assessable bl
entities enjoying exemption u/s. 11 & 12
and under certain other specified
provisions of section 10 are eligible for
this approval.
¾ Such approval shall, however, not
exceed at one point of time for more
than five assessment years [(Proviso to
section 80G(5)(vi)].
SIRC OF ICAI
¾ This approval is not available to such

entities as are wholly or substantially
engaged in the pursuit of religious
purposes. [Exemption 3 below section
80G(5c)].
80G(5c)]
¾ Marginal relaxation u/s. 5B is, however,
available if the amount applied for
religious purposes does not exceed 5%
of the total income.
While approval is accorded to an

assessable entity, the benefit of
deduction is available to the donors
and not to the recipient entity
approved.
approved
¾ The deduction is available only for the
donation made in money. In other
words, the monetary equivalent of the
donation made in kind is not eligible
g for
deduction. [Explanation 5 below Section
80G(5c)].
SIRC OF ICAI
¾ The basic intention behind this tax

incentive in the form of deduction is to
institutionalize the charity and to
channelise the private money/wealth and
resources of the donors towards social
charity.
¾ The charitable trust / institution has to
apply for obtaining this approval from
the CIT/DIT
/ who has been authorized to
accord or reject the approval or
continuance of approval sought by the
applicant trust / institution.
¾ Such order of approval or continuance of

approval or denial of approval shall be
passed by the CIT/DIT exercising the
authority in terms of the provisions of
section 80G(5) Clause (vi).
(vi)
SIRC OF ICAI
Procedure.
A detailed procedure in this regard has
been laid down in Rule 11AA –
- The applicant entity has to make an
application in triplicate in Form No. 10G.
- The application so filed, has to be
accompanied by –
(i) Copy of registration granted u/s
12AA/N tifi ti
12AA/Notification u/s.10(23)/10(23C).
/ 10(23)/10(23C)
(ii) Note on activities, carried out from
inception or during the last three
years, which ever is less.
(iii) Copies of the accounts from inception

or for the last three years, which ever
is less.
The CIT/DIT may, however, call for
further information, documents, and
evidence etc.
Where the CIT is satisfied that all
conditions laid down for approval are
fulfilled, he shall accord the approval in
terms of Rule 11AA(4).
Where he is not satisfied, he shall pass
an order refusing the grant of approval
or continuation of approval in terms of
Rule 11AA(5).
SIRC OF ICAI
The application filed in Form No.10G

seeking approval u/s. 80G(5) has to be
disposed of within six months from the
date of filing the application.
H
However, time
i taken
k by
b theh applicant
li in
i
not complying with the direction by the
CIT/DIT, shall be excluded in
computation of this limitation.
There is a disharmony in the matter of limitation

applicable for disposal of applications in Form No.10A
& 10G. While application in Form No. 10A for
registration u/s. 12AA has to be decided before the
expiry of six months from the end of the month in
which the application is received, the application filed
in Form No
No.10G
10G seeking approval u/s
u/s. 80G(5)(vi) has
to be decided before the expiry of six months from the
date on which the application is made. In quite a large
number of cases, applications in Form No. 10A and
10G are filed simultaneously, whereas the limitation
for disposal thereof are different. Normally, approval
u/s.80G(5)(vi) has to follow the grant of registration
u/s 12AA,
u/s. 12AA whereas the limitation in respect of the
application in Form No.10G expires earlier. It is,
therefore, felt necessary that the limitation applicable
in respect of both these applications is harmonized.
SIRC OF ICAI
Role of the Assessing Officer.

Whenever an application in Form No.10G
is received, a copy thereof may be
forwarded to the Assessing Officer
seeking his scrutiny report and
comments.
The Assessing Officer, should, therefore, -
¾ Examine, whether all the enclosures
prescribed are attached with the
application and whether they are in
order.
¾ Examine, whether accounts filed with the
returns received are in agreement with
those filed with the application.
¾ Verify, whether there has been any

contravention of section 11(2)/11(5) or
section 13(1)(c) leading to forfeiture of
exemption for any assessment year. This
aspect can be examined with reference
to the assessment records,
¾ Examine, whether there have been any
irregularities/manipulations or violations
of the provisions or the applicant
g g
trust/institution was found to be engaged
in activities, not in accordance with the
objects of the trust/institution, it will be
worthwhile to send a proposal for
cancellation of registration itself.
SIRC OF ICAI
Assessment of Charitable Trusts /

Institutions.
¾ As the crux of the matter is the eligibility
for exemption, the focal point for
scrutiny/investigation
ti /i ti ti should
h ld bbe fi
find
d outt
the contravention of provisions which
provide for forfeiture of exemption.
¾ Investigations/enquiries in the course of
assessment proceedings should be

oriented to find out how and whether
these entities are really discharging the
obligations, which otherwise entitle them
to exemption.
¾ Scrutinizing a case of such institutions

from the point of view of forfeiture of
exemption should, therefore, be the line
of investigation while dealing with their
assessments.
assessments
¾ Scrutiny into the aspects like,
observance of provision of section 11(2),
section 11(5), section 13(1)(c) etc.
Should form the core areas of
examination in the assessment
proceedings.
SIRC OF ICAI
¾ Voluntary contributions should also be

thoroughly analyzed to find out whether
they are really voluntary or forced or
contrived contributions.
¾ Classification of donations into “general
donations” and “corpus donations”
should also be examined in depth so as
to ensure that the specified percentage is
not camouflaged by misclassification of
accounts.
SOME OF THE IMPORTANT ASPECTS:

WHERE BUSINESS ITSELF IS VESTED
IN CHARITY, IT COULD NOT BE SAID
THAT THE OBJECT OF THE TRUST IS
TO CARRY ON BUSINESS AS WAS
POINTED OUT IN :AUDITOR
DASARATHARAMA REDDY CHARITIES
V. CIT AND THE SAME VIEW WAS
TAKEN IN CIT V.SHANTHI
CHANDRAN (2000) 241 ITR 371
(MAD.).
SIRC OF ICAI
ANONYMOUS DONATIONS:
ANONYMOUS DONATIONS:
VOLUNTARY CONTRIBUTION REFERRED
TO IN SUB
SUB--CLAUSE (iia) OF CLAUSE (24)
OF SECTION 2, WHERE A PERSON
RECEIVING SUCH CONTRIBUTION DOES
NOT MAINTAIN A RECORD OF THE
IDENTITY INDICATING THE NAME AND
ADDRESS OF THE PERSON MAKING SUCH
CONTRIBUTION AND SUCH OTHER
PARTICULARS INCLUDING THE PAN
DETAILS OF THE DONOR.
ANONYMOUS DONATIONS
EFFECT OF TAX ON SUCH
CONTRIBUTIONS:--
CONTRIBUTIONS:
30% RATE OF TAX ON ANY ANONYMOUS
DONATION RECEIVED, THE FOLLOWING
CASE TAXATION IS NOT APPLICABLE-
APPLICABLE-
-ANY TRUST OR INSTITUTION
CREATED OR ESTABLISHED WHOLLY FOR
RELIGIOUS PURPOSES
PURPOSES. BECAUSE THERE
IS NO EXEMPTION IS AVAILABLE FOR
WHOLLY RELIGIOUS TRUST OR
ASSOCIATION.
SIRC OF ICAI
PROFIT MAKING OBJECT

SUPREME COURT HELD IN ADDL.CIT
vs.SURAT
SURAT ART SILK CLOTH
MANUFACTURERS, WHERE MAIN
OBJECT IS CHARITABLE AND
INCIDENTAL OR ANCILLARY OBJECT
IS PROFIT MAKING OBJECT, STILL IT
WILL NOT LOOSE THE CHARACTER
AS CHARITABLE.13 CTR (SC)378.
BENEFIT TO THE SIZABLE

COMMUNITY
THE SUPREME COURT IN CIT vs.AHMEDABAD RANA CASTE
ASSOCIATION-- 140 ITR 1 (SC), HELD THAT THE
ASSOCIATION
ASSOCIATION FORMED TO PROMOTE UNITY AND
BROTHERHOOD AMONG THE MEMBERS OF THE
COMMUNITY, DEVELOP THE LIFE OF MEMBERS OF THE
COMMUNITY IS ENTITLED FOR REGISTRATION U/S.2 (15).
THE SAME WAS ESTABLISHED IN CIT

vs.A.P.PAWNBROKERS ASSOCIATION BY AP HIGHCOURT.
BUT IN THE CASE OF M.P.SHANTI VERMA JAIN, PRESIDENT

MSP FAMILY JAIN TRUST vs.STATE OF KERALA -61 CTR,
HELD THAT WHERE THE DOMINANT PURPOSE OF THE
TRUST WAS PROPOGATION OF THE JAIN RELIGION AND
TO SERVE ITS FOLLOWERS IS NOT CHARITABLE TRUST.
SIRC OF ICAI
DEPRECIATION ALLOWABLE
AS PER THE DECISION TAKEN BY
MADHYA PRADESH HIGH COURT IN
CIT vs.RAIPUR PALLOTTINE
SOCIETY--ITR 579 (MP), THAT THE
SOCIETY
DEPRECIATION ON
ASSETS/PROPERTY PROVIDED IN
THE ACCOUNTS, ALLOWABLE WHILE
WORKING OUT THE INCOME OF THE
SOCIETY.
REPAYMENT OF LOAN
A TRUST CAN TAKE A LOAN AND THE
SAID LOAN CAN BE REPAID OUT OF THE
INCOME OF THE SUBSEQUENT YEAR AND
THE PAYMENT OF THE SAID LOAN OUT OF
THE INCOME OF THE SUBSEQUENT YEAR
WOULD AMOUNT TO APPLICATION OF
INCOME FOR CHARITABLE AND
RELIGIOUS PURPOSES UNDER SECTION
11 (1) (a) OF THE ACT.
-CIR.ISSUED BY CBDT ON 24
24--01
01--1973.
SIRC OF ICAI
SECTION-13
SECTION- 13--DENIES
EXEMPTION
ANY PART OF INCOME IS HELD FOR PRIVATE
RELIGIOUS PURPOSE,
TRUST OR INSTITUTION IS CREATED FOR
PARTICULAR RELIGIOUS COMMUNITY OR CASTE
OTHER THAN SC,ST,BC AND WOMEN AND CHILD
WELFARE,
INCOME OF THE TRUST ENSURES DIRECTLY OR
INDIRECTLY FOR THE BENEFIT OF ANY
PERSONSPECIFIED IN SECTION 13 (3),
INVESTMENT OR DEPOSIT MADE OTHERWISE
THAN IN THE MODES SPECIFIED IN SECTION 11
(5).
DENIAL OF EXEMPTION IS FOR THE PARTICULAR
ASST.YEAR RELEVANT TO THE PRE.YEAR ONLY.
CONCLUSION
THANKS TO THE ORGANISERS.
THANKS TO MY GURUS.
THANKS TO THE PARTICIPANTS.
MY MAIL
ID.V_RAVULAPALLICO@YAHOO.COM.

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ABIDS – HIMAYATNAGAR CPE STUDY Tuesday, December 30, 2008

CIRCLE OF HYDERABAD BRANCH OF

¾ Provisions of section 12 AA prescribe a

¾ In other words, exemption in respect of

¾ One may ask if the Income Tax Act is

It is, therefore, necessary to understand the

ii. The Scheme of directive principles of state policy,

iii. The farmers of our constitution were

iv. The Income Tax Act was also

v. In a newly born independent country,

vii. Certain provisions in section 10,11 & 12

AS REGARDS THE EXEMPTION

i. The farmers of our constitution declared

ii. All religions, therefore, were allowed a

iii. While no particular religion was to be

Exemption of Income stipulated u/s. 11 &

Having touched upon the basic postulates

As already mentioned, the income of any

The charitable ppurposes

• Section 2(15) of the Act defines the

The latest test i.e, advancement of any

¾ The trust or institution seeking

‘Religious purposes’ have, however, not

 Providing for establishment and worship

 Provision for teaching religious texts or

States like Tamil Nadu, Andhra Pradesh, Kerala

A religious endowment covered by such laws

Having appreciated the fact that a trust or

APPLICATION FOR REGISTRATION.

• The application in form No. 10A (to be

• The procedure for registration is

Role of the Assessing Officer:

(i) Go through the deed or instrument of

(ii) Whether the charitable objects are certain or

• The analysis of the accounts,

The registration entitling the applicant

Contravention of the provisions of

In case, this specified percentage is not

In the event of any failure to apply the

Besides, in the case of Nagpur Hotels

The income so accumulated, has to

Contravention of the provisions of

Contravention of the provisions of

The rationale behind prescribing the modes and

Contravention of the provisions of Sec.

Forfeiture of exemption in the above

An order cancelling the registration has to be in

Approval under section 80G.

¾ This approval is not available to such

While approval is accorded to an

¾ The basic intention behind this tax

¾ Such order of approval or continuance of

(iii) Copies of the accounts from inception

 The application filed in Form No.10G

 There is a disharmony in the matter of limitation

Role of the Assessing Officer.

¾ Verify, whether there has been any

Assessment of Charitable Trusts /

assessment proceedings should be

¾ Scrutinizing a case of such institutions

¾ Voluntary contributions should also be

 SOME OF THE IMPORTANT ASPECTS:

Providing for establishment and worship

Provision for teaching religious texts or

The application filed in Form No.10G

There is a disharmony in the matter of limitation

SOME OF THE IMPORTANT ASPECTS:

THE SAME WAS ESTABLISHED IN CIT

BUT IN THE CASE OF M.P.SHANTI VERMA JAIN, PRESIDENT