Amendment in the provisions of sections 11 to 13. - Income Tax - 367/CBDT

INSTRUCTION NO. 367/CBDT Dated: January 3, 1972 Section(s) Referred: 11 ,13 Statute: Income - Tax Act, 1961 Reference is invited to Board's instruction No. 38 F.No 20/3/69-IT(AI) dated 18-4-69 on the above subject. These instructions have been reviewed by the Board in the light of amendments to section 11 to 13 by Finance Act 1970. It has been decided as follows: 2. As per the present practice, exemption certificates should initially be made valid for only one assessment year when the Trust comes up for such a certificate for the first time. After scrutiny of accounts of the first year, the certificates should however, be renewed for the subsequent three years. Further renewals should be done once in three years after scrutiny of the records and after ensuring that the provisions of sections 11 to 13 are complied with by the Trust. 3. In order to safeguard against the infringement of the provisions of section 13, particularly of sub-clause (ii) of clause (c) of sub-section 9(1) of section 13, the trust should be asked to file a certificate from its Auditor to the effect that the provisions of section 13(1)(c) have not been infringed by the trust in the past upto the date of application for the renewal of the exemption certificate. Such certificate should be obtained at the time of each renewal.