Section 35(1)(iii) of the
Income-Tax Act, 1961 - Scientific research expenditure - Approved social or
statistical research association or institutions
It is hereby notified for
general information that the organization The
Indian Law Institute, New Delhi 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.