Provisions relating to registration of Trusts as proposed in Finance Bill 1999

It is proposed to amend section 253 of the Income-tax Act relating to appeals to the Appellate Tribunal. The existing provisions do not provide for an appeal to the Appellate Tribunal against an order passed under section 12A A relating to registration for a Trust or Institution. It is proposed to amend this section so as to insert a reference to Section 12AA so the appeal may be filed against an order passed under section 12AA.

It is proposed to amend section 12A so as to provide that an application for registration of the Trust or institution which is required to be made in the prescribed form and manner to the Chief Commissioner or Commissioner, shall from 1st June, 1998 be made only to the Commissioner.

In consequence to the above proposed amendment, it is further proposed to amend section 12AA of the Income-tax Act so as to provide that the order on an application for registration of a Trust or institution is to be made by the Commissioner only and not by the Chief Commissioner.

It is also proposed to insert a new sub-section (1A) in section 12AA so as to provide that all applications pending before the Chief Commissioner on which no order has been made by him before 1st June, 1999 shall stand transferred from 1st June, 1999 to the Commissioner and the Commissioner may proceed with such applications from the stage at which it was on that day.

The proposed amendment will take effect from 1st June, 1999.