INCOME TAX

INSTRUCTION NO. 1981/2000

 Dated: April 5, 2000

Subject:- Forwarding of applications for notification u/s. 10(23C)(vi) & (via) of the IT Act. 1961- guidelines - reg.

The provisions of clauses (vi) and (via) have been inserted in section 10(23C) by the Finance (No.2) Act, 1998. Accordingly applications in Form 56D are required to be sent to the Board through the Commissioner of Income Tax having jurisdiction over the Fund/Trust/Institution. The Board has observed that in many cases, the applications are forwarded by the concerned CIT without their comments specific recommendations and also without indicating details of examination of such applications. The absence of such details leads to avoidable duplication of work in Central Board of Direct Taxes. It has now been decided that, in future, reports on all such applications should be forwarded to the Board in the prescribed proforma (copy enclosed) by the concerned CIT through the CCIT, giving his/her specific comments/recommendations.

2. This may be brought to the notice of all officers in your region.

F. No. 197/135/99-ITA-I

(PROMILA BHARDWAJ)
DIRECTOR (ITA-I)
CENTRAL BOARD OF DIRECT TAXES

Enclo: As above

REPORT ON APPLICATION U/S.10(23C)(vi) & (via) OF THE I.T. ACT, 1961

1. (a) Name and address of the applicant organisation :

(b) Legal status of the applicant (it may be specified if the applicant is a trust or a  fund or an institution). :

(c) The clause of section 10(23C) under which notification is sought. :

(d) The A.Y.(r) for which notification is sought :

(e) Whether the application has been made in the prescribed form. :

2. Objects of the Trust/fund/institution. Please specify the clauses of the deed/memorandum :

3. The aggregate annual receipts of the Institution :

4. Short summary of the activities of the applicant :

5. The assessment history of the applicant including :

(a) Whether it has been filing returns of Income-tax regularly, if required to do so? :

(b) Whether its income has been held to be u/s. 11? :

(c) Whether any penalties/prosecution have been initiated/levied/launched? :

(d) Whether any demand is outstanding? :

6. Whether the affairs of the applicant are administered and supervised in a manner which ensure the proper application of income to the objects thereof? :

7. A list of trustees/members of the managing council with addresses and their PANs along with the finding as to whether they derive any benefit by their being associated with the applicant? :

8. Whether copies of annual report for the relevant years available. If not, the latest years for which such reports have been appended? :

9. (a) Position of compliance with the Foreign Contribution (Regulation) Act in response to donations from outside India, if any. :

(b) Copy of the audited a/c's for the last 3 years along with a not on examination of a/c's, and on the activities as reflected in these accounts, if any. :

(c) In case trust has shown receipts, from any business, the precise nature of the same and the finding as to whether it is incidental to its objects. The amount of income that would have been liable to tax u/s, 11(1A), but for exemption u/s. 10(23C)(vi)/(via) in the last 3 years, may also be indicated. :

(d) Whether separate books of a/c. of such business are maintained by the applicant? :

10.(a) Whether the application of income is wholly and exclusively towards the objects of the applciant. Hear-wise details of the income brought forward from the
preceding years and its utilisations towards the avowed objectives? :

(b) Whether the funds of the applicant have been invested in the modes specified in Sec 11(5). If not reasons therefore & the details thereof. :

(c) Whether the Rules governing the applicant contain provision for transfer or application of the income or assets of the applicant for any purpose other than the purposes for which it was constituted? :

(d) Whether any discretionary powers are vested vis-à-vis the utilisation of funds in any of the trustees/members? :

(e) Whether any provisions of Sec. 11,12, 12A, or 13 of the IT ACT, 1961 have been violated by the applicant? :

(f) Treatment of utilisation of assets/surplus in the event of dissolutions/winding up of the trust/fund. :

11. Whether a copy of the latest certificate u/s 80G issued by the CIT, if any, has been enclosed? :

12. Whether a copy of communication from the CIT, with respect to the application of the Trust/Institution for a registration u/s 12A, if any, has been enclosed? :

13. Recommended/not recommended. If Recommended, please specify period for which exemption is recommended. :

(COMMISSIONER OF INCOME TAX)