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 P.S.G.
& Sons Charities for the unit P.S.G. College of Technology, Coimbatore, 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 2008-09 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 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 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 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 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 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.
(F.No.203/93/2008/ITA-II)