Section 7 - Amendment of section 12AA. - Finance (No. 2) Act, 2019

Amendment of section 12AA. 7. In section 12AA of the Income-tax Act, with effect from the 1st day of September, 2019, (I) in sub-section (1), (i) for clause (a), the following clause shall be substituted, namely: (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 ; (ii) in clause (b), after the words genuineness of its activities , the words, brackets, figures and letter as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause shall be inserted; (II) in sub-section (4), for the portion beginning with the words the activities of the trust or the institution and ending with the words cancel the registration of such trust or institution , the following shall be substituted, namely: (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 .