SECTION 35(1)(II) OF THE INCOME-TAX ACT, 1961 - SCIENTIFIC
RESEARCH EXPENDITURE - APPROVED SCIENTIFIC RESEARCH ASSOCIATIONS/INSTITUTIONS
NOTIFICATION
NO. 84/2008, DATED 12-8-2008
It is hereby notified for general
information that the organization Tata Memorial Centre, Mumbai, has been
approved by the Central Government for the purpose of clause (ii) of
sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with
Rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), with effect from
1-4-2006 in the category of 'other Institution', partly engaged in research
activities subject to the following conditions, namely:-
(i) The
sums paid to the approved organization shall be utilized for scientific
research;
(ii) The
approved organization shall carry out scientific research through its faculty
members or its enrolled students;
(iii) The
approved organization shall maintain separate books of account in respect of
the sums received by it for scientific research, reflect therein the amounts
used for carrying out research, get such books audited by an accountant as
defined in the explanation to sub-section (2) of section 288 of the said Act
and furnish the report of such audit duly signed and verified by such
accountant to the Commissioner of Income-tax or the Director of Income-tax
having jurisdiction over the case, by the due date of furnishing the return of
income under sub-section (1) of section 139 of the said Act;
(iv) The
approved organisation shall maintain a separate statement of donations received
and amounts applied for scientific research and a copy of such statement duly
certified by the auditor shall accompany the report of audit referred to above.
3. The Central
Government shall withdraw the approval if the approved organization:-
(a) fails to maintain separate books of
account referred to in sub-paragraph (iii) of paragraph 1; or
(b) fails to furnish its audit report
referred to in sub-paragraph (iii) of paragraph 1; or
(c) fails to furnish its statement of the
donations received and sums applied for scientific research referred to in
sub-paragraph (iv) of paragraph 1; or
(d) ceases to carry on its research
activities or its research activities are not found to be genuine; or
Manoj
Published in Income Taxon 15 September 2008
Source : ,