Section
35(1)(iii) of the Income-tax Act, 1961 – Scientific research expenditure –
Approved social science or statistical research or associations or institutions
– Approval of Mother’s Service Society, Puducherry
as an organization for purpose of section 35(1)(iii)
It is hereby notified
for general information that the organization Mother’s Service Society, Puducherry has been approved by the
Central Government for the purpose of clause (iii) 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 2009-2010 onwards 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 research in social sciences;
(ii)
The approved organization shall carry out
research in social science or statistical research through its faculty members
or its enrolled students;
(iii) The approved organization shall maintain separate books of accounts 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 research in social sciences 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 accounts 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 research in social sciences or statistical 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 (iii) of sub-section (1) of section 35 of the said Act, read with rules 5C and 5E of the said Rules.