Amendment made in Income Tax Rules, 2002

GOVERNMENT OF PAKISTAN Revenue Division Central Board of Revenue *** N O T I F I C A T I O N (Income Tax) Islamabad, the 27thJune, 2006 S.R.0 667(I)/2006 - In exercise of the powers conferred by sub-section (1) of 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Central Board of Revenue is pleased to direct that the following amendment shall be made in Income Tax Rules, 2002, the same having been previously published as required by sub-section (3) of the said section. In the aforesaid Rules,- (1) in sub rule (2) of rule 212, (a) in clause(a), after the semi-colon at the end, the word “and” shall be added; (b) in clause (b), the semi-colon and word “ ; and” shall be omitted; and (c) clause ( c) shall be omitted; (2) for rule 214, the following shall be substituted, namely:- “214. Validity of the approval.- The approval granted under rule 212 will remain in force for the subsequent years unless withdrawn under rule 217.”; (3) rule 216 shall be omitted; and, (4) for rule 217, the following shall be substituted, namely:- “217. Power to withdraw approval.- (1) The Commissioner may, at any time, withdraw approval granted under rule 212, if he is satisfied that- (a) the constitution, memorandum and articles of association, trust deed, rules and regulations or bye-laws, as the case may be, specifying the aims and objects of the organization do(es) not provide for prohibiting the making of any changes in the constitution, memorandum and articles of association, trust deed, rules, regulations and bye-laws without prior approval of the Commissioner; (b) the organization has- (i) been or is being used for personal gain of any particular person or a group of persons as specified in clause (a) of sub-rule (2) of rule 213; (ii) been propagating the view of a particular political party or a religious sect as specified in clause (b) of sub-rule (2) of rule 213; (iii) been or is being managed in a manner calculated to personally benefit its members or their families as specified in clause (c) of sub-rule (2) of rule 213; or (iv) not been or will not be able to achieve its declared aims and objects in view of its set up, administration or otherwise as evaluated and certified by an independent certification agency as specified in clause (d) of sub-rule (2) of rule 213; (v) failed to give valid reasons for setting apart, or not utilizing, or accumulating surpluses, excluding unrestricted funds, in excess of twenty five percent of the income for the year. (vi) failed to file the return of income supported with following documents; (a) the statement of audited balance sheet and statement of accounts as mentioned in clause (d) of sub-rule (2) of rule 211; (b) statement showing names and addresses of the persons from whom donations, contributions, subscriptions etc exceeding Rs. 5,000/- have been received during the tax year; (c) statement showing the names and addresses of donees and beneficiaries etc to whom payments, services etc exceeding Rs. 5,000/- have been made during the tax year; and (d) statement showing the money set apart or kept un-utilized with reasons thereof; (vii) failed to provide a detailed performance evaluation report in terms of clause (g) of sub-rule (2) of rule 211, after every three years; (2) Approval shall not be withdrawn under sub-rule (1) unless the organization has had an opportunity to show cause against the action proposed to be taken. (3) Where the Commissioner decides to withdraw approval under sub-rule (1), he shall intimate the organization, in writing, of the decision including a statement of reasons for the decision.” [C.No. 4(4)/ITR/06] (Salman Nabi) Member (Direct Taxes)/ Additional Secretary