Instruction No. 16/2015
F.No.197/38/2015-ITA.1
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
(ITA-1 Division)
North Block, ITA-I Division
Dated, the 6th November, 2015
To
All the Principal Chief Commissioners of Income-tax
All the Chief Commissioners of Income-tax
Chief Commissioner of Income-tax (Exemptions)
All Directors General of Income-tax
Sir/Madam,
Sub:- Following the prescribed Time limit in passing order u/s 12AAof the Income-tax Act, 1961.
Sub-section (2) of Section 12AA of the Income-tax Act 1961 prescribes that every order granting or refusing registration under clause (b) of sub-section (I) of that Section shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of the sub-section (1) thereof. Thus while processing the application u/s 12AA of the Act, the time limit of six months has to be adhered to by the Commissioner of Income Tax (Exemptions). However, it has been brought to the notice of the Board that the said time limit has not been observed in some cases.
2. The undersigned is directed to convey that the aforesaid time limit of six months is to be strictly followed by the Commissioner of Income Tax (Exemptions) while passing order u/s 12AA. The CCIT (Exemptions) may monitor the adherence of prescribed time limit and initiate suitable administrative action in case any laxity in adhering to the same is noticed.
(Deepshikha Sharma)
Director to the Government of India
The provisions relating to automatic granting of deemed registration in case of non observance of time limit of six months take care of applicants. However I agree with the suggestion od Mr M.Natrajan regarding simultaneous processing of applications for grant of exemptions under section 80G
It is a welcome circular. Nowadays Application for recognition under 80G is not being acted if filed with application for Form12A. It would be fine if the department also instructs for the same.