India - Income Tax Act 2010 - Saarc

1.73 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(23)(Contd. from p. 1.72)Provided that the association or institution shall make an application in theprescribed form and manner to the prescribed authority for the purpose of grantof the exemption, or continuance thereof, under this clause:Provided further that the Central Government may, before notifying the associationor institution under this clause, call for such documents (including auditedannual accounts) or information from the association or institution as it thinksnecessary in order to satisfy itself about the genuineness of the activities of theassociation or institution and that Government may also make such inquiries as itmay deem necessary in this behalf :Provided also that the association or institution,—(a) applies its income or accumulates it for application, wholly and exclusivelyto the objects for which it is established and the provisions of sub-section (2)and sub-section (3) of section 11 shall apply in relation to such accumulationsubject to the following modifications, namely :—(i) in sub-section (2),—(1) the words, brackets, letters and figure “referred to in clause (a) orclause (b) of sub-section (1) read with the Explanation to that subsection”shall be omitted;(2) for the words “to charitable or religious purposes”, the words “forthe purposes of games or sports” shall be substituted;(3) the reference to “Assessing Officer” in clause (a) thereof shall beconstrued as a reference to the “prescribed authority” referred toin the first proviso to this clause;(ii) in sub-section (3), in clause (a), for the words “charitable or religiouspurposes”, the words “the purposes of games or sports” shall be substituted;and(b) does not invest or deposit its funds, other than—(i) any assets held by the association or institution where such assets formpart of the corpus of the fund of the association or institution as on the1st day of June, 1973;(ii) any assets (being debentures issued by, or on behalf of, any company orcorporation), acquired by the association or institution before the 1stday of March, 1983;(iii) any accretion to the shares, forming part of the corpus of the fundmentioned in sub-clause (i), by way of bonus shares allotted to theassociation or institution;(iv) voluntary contributions received and maintained in the form of jewellery,furniture or any other article as the Board may, by notification in theOfficial Gazette, specify,for any period during the previous year otherwise than in any one or moreof the forms or modes specified in sub-section (5) of section 11; and(c) does not distribute any part of its income in any manner to its membersexcept as grants to any association or institution affiliated to it;(d) applies the amount received by way of donations referred to in clause (c)of sub-section (2) of section 80G for purposes of development of infrastructurefor games or sports in India or for sponsoring of games and sports inIndia :Provided also that the exemption under this clause shall not be denied in relationto any funds invested or deposited before the 1st day of April, 1989 otherwise thanin any one or more of the forms or modes specified in sub-section (5) of section 11if such funds do not continue to remain so invested or deposited after the 30th dayof March, 1993 :(Contd. on p. 1.74)