Verification of recognised funds. - Income Tax - 1678/CBDT

INSTRUCTION NO. 1678/CBDT Dated: December 27, 1985 Attention is invited to the following instructions issued by the Board on the above subject :- (1) F.No. 215/28/70-ITA.II dated 12.2.1971. (ii)Instruction No. 581 vide (F.No. 215/12/72-ITA.II dated 2.8.1973.) (iii)Instruction No. 1188 vide (F.No. 215/11/78-ITA.II dated 22.6.1978.) (iv) instruction No. 1357 vide (F. No. 215/11/78-ITA.II dated 17.9.1980.) 2. Instructions No. 1188 dated 22nd June, 1978, while reiterating the administrative arrangements for the assessments of recognised funds, directed that the work of verifying whether a fund continues to observe the conditions for retaining recognition should be attended to in the Commissioner of Income-tax Office as the verification on the basis of which the fund was granted exemption was also done by them. These instructions detailed five steps to be followed so as to see whether the conditions under which the fund has been recognised continue to be fulfilled and the funds continue to comply with the statutory requirements in this regard. 3. Inspite of clear instruction on the subject, the Board are concerned that no worth-while action is being taken by the Commissioners in the matter so as to prevent misuse of these provisions. The Board, therefore, desire that the instructions issued on the subject should be strictly followed and appropriate steps must be taken for withdrawal of approvals to provident funds, in deserving cases. 4. The receipt of this instruction may please be acknowledged to the undersigned.