Circular No. 11 of 2022
                                                                                       F. No.370142/4/2021-TPL
                                                                                        Government of India
                                                                                         Ministry of Finance
                                                                                       Department of Revenue
                                                                                    Central Board of Direct Taxes
                                                                                         (TPL Division)
                                                                                                                                                            Dated: 3rd June, 2022
Sub: Clarification regarding Form No 10AC issued till the date of this Circular - reg.
Finance Act, 2022 has inserted sub-section (4) in section 12AB of the Income-tax
Act, 1961 (the Act) allowing the Principal Commissioner or Commissioner of Income-tax to
examine if there is any “specified violation” by the trust or institution registered or
provisionally registered under the relevant clauses of sub-section (1) of section 12AB or subsection (1) of section 12AA. Subsequent to examination by the Principal Commissioner or
Commissioner of Income-tax, an order is required to be passed for either cancellation of the
registration or refusal to cancel the registration. Similar provisions have also been introduced
in clause (23C) of section 10 of the Act by substituting the fifteenth proviso of the said clause
with respect to fund or institution trust or institution or any university or other educational
institution or any hospital or other medical institution referred under sub-clauses (iv), (v),
(vi), (via) of this clause and which have been approved or provisionally approved under the
second proviso to the said clause. These amendments are effective from 1st April, 2022. In
addition to the specified violations referred above, the power of cancellation has also been
granted under sub-rule (5) of rule 17A and sub-rule (5) of rule 2C of the Income-tax Rules,
1962 ( the Rules) to the Principal Commissioner or Commissioner authorised by the Board.
This Circular only relates to cancellation of registration/approval or provisional
registration/approval in the case of “specified violation”.
2. The definition of “specified violation” for the purposes of fifteenth proviso to clause
(23C) of section 10 and section 12AB of the Act has been provided in the respective clause
and section. The said definition, inter-alia, includes instances where any activity of the fund
or trust or institution is not being carried out in accordance with all or any of the conditions
subject to which it was approved/ provisionally approved or registered/provisionally registered