Section 12AA - Procedure for registration - Income-tax Act, 1961

1 [Procedure for registration. 12AA. ( 1) The 2 [ *** ] 9 [Principal Commissioner or Commissioner] on receipt of an application for registration of a trust or institution made under clause ( a ) 3 [ or clause ( aa ) 10 [ or clause (ab) ] of sub-section (1) ] of section 12A, shall- 12 [ (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about, (i) the genuineness of activities of the trust or institution; and (ii) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects, and may also make such inquiries as he may deem necessary in this behalf; and ] ( b ) after satisfying himself about the objects of the trust or institution and the genuineness of its activities 13 [ as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause ] , he- ( i ) shall pass an order in writing registering the trust or institution; ( ii ) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause ( ii ) shall be passed unless the applicant has been given a reasonable opportunity of being heard. 4 [ (1A) All applications, pending before the 9 [Principal Chief Commissioner or Chief Commissioner] on which no order has been passed under clause ( b ) of sub-section (1) before the 1st day of June, 1999, shall stand transferred on that day to the 9 [Principal Commissioner or Commissioner] and the 9 [Principal Commissioner or Commissioner] may proceed with such applications under that sub-section from the stage at which they were on that day.] (2) Every order granting or refusing registration under clause ( b ) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause ( a ) 5 [ or clause ( aa ) 11 [ or clause (ab) ] of sub-section (1) ] of section 12A .] 6 [ (3) Where a trust or an institution has been granted registra tion under clause ( b ) of sub-section (1) 7 [or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] and subsequently the 9 [Principal Commissioner or Commissioner] is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard .] 8 [ (4) Without prejudice to the provisions of sub-section (3), where a trust or an institution has been granted registration under clause (b) of sub-section (1) 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]and subsequently it is noticed that 14 [ (a) the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13; or (b) the trust or institution has not complied with the requirement of any other law, as referred to in sub-clause (ii) of clause (a) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality, then, the Principal Commissioner or the Commissioner may, by an order in writing, cancel the registration of such trust or institution ] : Provided that the registration shall not be cancelled under this sub-section, if the trust or institution proves that there was a reasonable cause for the activities to be carried out in the said manner. ] 16 [ **** ] 17 [ (5) Nothing contained in this section shall apply on or after the 1st day of April, 2021. ] ------------------------------------ Notes :- 1. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 2. Words Chief Commissioner or omitted by the Finance Act, 1999, w.e.f. 1-6-1999. Earlier the quoted words were inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 3. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007. 4. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999. 5. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007. 6. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 7. Inserted vide Finance Act, 2010 w.e.f. 01.06.2010 8. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of October, 2014 9. Substituted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 10. Inserted vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 11. Inserted vide THE FINANCE ACT, 2017 with effect from 1st day of April, 2018 12. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 before it was read as ( a ) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and 13. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 14. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-09-2019 before it was read as the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13, then, the Principal Commissioner or the Commissioner may by an order in writing cancel the registration of such trust or institution 15. Inserted vide THE FINANCE ACT, 2020 dated 27-03-2020 w.e.f. 01-06-2020 16. Omitted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 15 [ (5) Nothing contained in this section shall apply on or after the 1st day of June, 2020. ] 17. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020