Approval of the investment fund at its option for purposes of section 9(12)

Application and decision (sub-rules 1 to 6). An investment fund may at its option seek approval, applying in writing with documents and evidence to the Member, Central Board of Direct Taxes supervising the Foreign Tax and Tax Research Division, three months before the start of the tax year for which approval is sought. The Board notifies a committee headed by a Principal Chief Commissioner or Chief Commissioner with two other authorities not below Commissioner, which may call for documents and information and recommends whether to approve and on what conditions. The Board, on its recommendation, within two months from the end of the month of application, grants approval by written order on such conditions as it deems fit or rejects the application with recorded reasons.

Effect and withdrawal (sub-rules 7 to 10). Approval applies for the tax year referred to and subsequent years unless withdrawn, and the benefit of section 9(12) is not denied for any year in which it is in force. The Board may withdraw it if it was obtained by misrepresentation or fraud, if the conditions in section 9(12), Schedule I and the guidelines under paragraph 5 of that Schedule are not fulfilled, or if a condition of the approval is violated. No order rejecting or withdrawing approval is passed without a reasonable opportunity of being heard, and it is communicated to the fund, the Assessing Officer, and the Principal Commissioner or Commissioner having jurisdiction.