Section 12AA provides that where any application has been made on or after 1-6-2007, the provisions of section 11 & 12 is beneficially trigerred in relation to the  income of such trust or institution for the assessment year immediately following the financial year in which such application is made.

Procedure

The Commissioner, on receipt of an application for registration of trust shall within the expiry of six months from the end of the month in which application was received for registration shall move along with in the under listed manner :

•  The Commissioner may call upon for necessary documents in order to satisfy himself about the genuineness of activities of the trust and can also make necessary inquiries.

• After being satisfied about the nature, objects and the genuineness of the trust or institution he may –

i.  Pass an order in writing registering the trust or institution.

ii. Pass an order in writing refusing registration of trust or institution, if he is  not so satisfied by the documents submitted to him by the trust.

iii. Give the applicant a reasonable opportunity of being heard in case (ii).

iv. Sent a copy of such order to the applicant.

If after granting registration subsequently the commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out non-parallel in relation to its objects, then he may pass an order in writing, cancelling the registration of trust or institution, after giving such trust or institution a justifiable opportunity of being heard.