State Act

THE KARNATAKA STATE OPEN UNIVERSITY ACT, 1992

27. Annual accounts, etc .- (1) The annual accounts and the balance sheets of the University shall be prepared under the directions of the Board of Management and shall once at least every, and at intervals of not more than, fifteen months be audited by the 1[Principal Director, Karnataka State Audit and Accounts Department]1 or such person as may be authorised in this behalf. (2) A copy of the accounts together with the audit report shall be submitted to the Chancellor along with the observations, if any, of the Board of Management. (3) Any observation made by the Chancellor on the annual accounts shall be brought to notice of the Board of Management and the views of the Board of Management, if any, on such observations shall be submitted to the Chancellor. (4) A copy of the accounts together with the audit report, as submitted to the Chancellor shall also be submitted to the State Government, which shall as soon as may be, cause the same to be laid before both the Houses of the Legislature at their next earliest session. (5) The audited annual accounts after having been laid before both the Houses of the Legislature shall be published in the official Gazette. 2[(6) The University shall, where its total income as computed under the Income Tax Act without giving effect to the provisions of sections 11 and 12 of that Act exceeds the maximum amount which is not chargeable to income-tax in any previous year, get its accounts for that year audited by an accountant as defined in the Explanation to sub-section (2) of section 288 of the Income Tax Act and furnish along with its return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed, in accordance with clauses (b) and (ba) of sub-section (1) of section 12A of the Income Tax Act. (7) The University shall utilize its income and movable and immovable property only for the furtherance of its objects, shall not invest or deposit any income accumulated or set apart for application to charitable purposes in India in any form or mode other than those specified in sub- section (3) of section 11 of the Income Tax Act and shall not distribute its income or property to any person by way of profit, dividend and interest or in any other manner.]2