SECTION 35(1)(II) OF THE INCOME-TAX ACT, 1961 - SCIENTIFIC
RESEARCH EXPENDITURE - APPROVED SCIENTIFIC RESEARCH ASSOCIATIONS/INSTITUTIONS
NOTIFICATION
NO. 85/2008, DATED 12-8-2008
It
is hereby notified for general information that the organization Sir Ganga Ram
Trust Society, New Delhi, 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 1-4-2008 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 organization 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.
2. 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
(e) ceases
to conform to and comply with the provisions of clause (ii) of sub-section (1)
of section 35 of the said Act read with rules 5C and 5E of the said Rules.
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