SECTION
35(1)(ii) OF THE INCOME-TAX ACT, 1961 - SCIENTIFIC RESEARCH EXPENDITURE -
APPROVED SCIENTIFIC RESEARCH ASSOCIATIONS / INSTITUTIONS
It is hereby notified for
general information that the organization Centre
for Development of Advanced Computing, Pune 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 5D of the Income-tax
Rules, 1962 (said Rules) from assessment
year 2009-2010 in the
category of ‘scientific research
association’ subject to the following conditions, namely:-
(i) The sole objective of the approved
‘scientific research association’ shall be to undertake scientific research;
(ii)
The approved organization shall carry out
the scientific research activity by
itself;
(iii) The approved
organization shall maintain books of
accounts and 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 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 donations received and amounts 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 5D of the said Rules.
(F.No.203/84/2008/ITA-II)