17/2011 : Notification: 17 Date of Issue: 1/4/2011

INCOME-TAX ACT

NOTIFICATION

Income-tax : Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific research expenditure - Approved scientific research associations/institutions

NOTIFICATION NO. 17/2011 [F.NO. 203/16/2009/IT (A-II)], DATED 1-4-2011

It is hereby notified for general information that the organization Physical Research Laboratory, Ahmedabad, 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) with effect from 1-4-2003 to 31-3-2008 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 account 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 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 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.

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