Application for approval for purpose of section 133(1)(b)(ii)
(1)
A registered non-profit organisation or a person referred to in Schedule III (Table: Sl. No. 1) may, for the purpose of section 133section 133(1)(b)(ii), make an application for approval in such form and manner, as prescribed, to the Principal Commissioner or Commissioner, subject to the following conditions:–– (a) it is not expressed to be for the benefit of any particular religious community or caste;
(b)
it is established in India for a charitable purpose and does not incur any expenditure of an amount being 5% or more of its total income during a tax year which is of a religious nature;
(c)
the instrument under which it is constituted does not, or the rules governing it do not, contain any provision for the transfer at any time of the whole or any part of its assets for any purpose other than a charitable purpose;
(d)
it maintains regular accounts of its receipts and expenditure;
(e)
it prepares such statement for such period, as prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time, as prescribed;
(f)
it delivers to the said prescribed authority, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under clause (e) in such form and verified in such manner, as prescribed; and
(2)
The application under sub-section (1) shall be made in respect of the cases referred to in column B of the Table below within the time limit provided in column C of the said Table and the Principal Commissioner or Commissioner, on receipt of such application, shall follow the procedure provided in sub-sections (3) and (4), and shall pass an order in writing within the time limit provided in column D and approval, if granted, shall be valid for a period provided in column E of the said Table. Table Sl. No. Case Time limit for Time limit Validity of furnishing for passing approval application the order A B C D E 1. Where the At any time One Three tax activities of the during the tax months from years applicant have year from which the end of the commencing not approval is month in from the tax commenced. sought. which year in which application is such made. application is made. 2. Where the At any time Six months Five tax activities of the during the tax from the end years applicant have year from which of the quarter commencing commenced. approval is in which from the tax sought. application is year in which made. such application is made. 3. Where the Within six Six months Five tax applicant has months of the from the end years provisional commencement of the quarter commencing approval and of activities. in which from the tax activities have application is year in which commenced. made. such application is made. 4. Where the At least six Six months Five tax provisional months prior to from the end years approval of the expiry of the of the quarter following the applicant is due provisional in which tax year in to expire and approval. application is which such activities have made. application is not made. commenced. 5. Where the At least six Six months Five tax period for months prior to from the end years approval of a the expiry of the of the quarter following the registered said approval. in which tax year in non-profit application is which such organisation is made. application is due to expire. made.
(3)
Where an application has been made in any of the cases specified under sub-section (2) (Table: Sl. No. 2) to (Table: Sl. No. 5), the Principal Commissioner or Commissioner shall call for such documents or information or make such inquiries as he thinks necessary in order to satisfy himself as to the compliance of such requirements of any other law in force, as are material for the purpose of 5 achieving its objects, and the genuineness of activities and–– (a) if he is so satisfied about the objects and the genuineness of the activities and compliance of the requirements of any other law in force, he shall pass an order in writing approving it; or (b) if he is not so satisfied, after affording a reasonable opportunity of being heard,–– (i) shall pass an order in writing rejecting the application, where the application was made in any of the cases specified in sub-section (2) (Table: Sl. No. 2); and (ii) in any other case, shall pass an order rejecting the application and also cancelling the approval, and send a copy of the order to the applicant and the Assessing Officer.
(4)
Where an application has been made in any of the cases specified in sub-section (2) (Table: Sl. No. 1), the Principal Commissioner or Commissioner shall pass an order granting provisional approval.