Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific Research Expenditure --
Approval of Central Manufacturing Technology Institute, Bangalore as an organization
in the category of 'Other Institution' for purpose of section 35(1)(ii)
It is hereby notified for general information that the organization Central Manufacturing
Technology Institute, Bangalore 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), from assessment year
2011-12 onwards in the category of 'Other Institution', 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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