FORM NO.3CF-I for Application Form for Approval In The Case of a Research Association. FORM NO.3CF-I must be used by a research association for obtaining approval under section 35(1) (ii)/ (iii) of the Act. Application in this form must be made in duplicate form.
(1) An application for approval,—
(i) under clause (ii) or clause (iii)] of sub-section (1) of section 35 by a
research association in duplicate in Form No. 3CF-I;
(ii) under clause (ii) or clause (iii) of sub-section (1) of section 35 by a university, college or other institution in duplicate in Form No. 3CF-II,
shall be made, at any time during the financial year immediately preceding the assessment year from which the approval is sought, to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the applicant.
(2) Annexure to the application [in] Form No. 3CF-I shall be filled out if the association claims exemption under clause (21) of section 10 of the Income-tax Act.
(3) The applicant shall send a copy of the application in Form No. 3CF-I or, as the case may be, Form No. 3CF-II to Member (IT), Central Board of Direct Taxes accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate in the office of the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case.
(4) The period of one year, as specified in the fourth proviso to sub-section (1) of section 35, before the expiry of which approval is to be granted or the application is to be rejected by the Central Government shall be reckoned from the end of the month in which the application form from the applicant for approval is received in the office of Member (IT), Central Board of Direct Taxes.
(5) If any defect is noticed in the application in Form No. 3CF-I or Form No. 3CF-II or if any relevant document is not attached thereto, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application form in his office.
(6) The applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended, so however, that the total period for removal of deficiency does not exceed thirty days, and if the applicant fails to remove the deficiency within the period of thirty days so allowed, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall send his recommendation for treating the application as invalid to the Member (IT), Central Board of Direct Taxes.
(7) The Central Government, if satisfied, may pass an order treating the application as invalid.
(8) If the application form is complete in all respects, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax, may make such inquiry as he may consider necessary regarding the genuineness of the activity of the association or university or college or other institution and send his recommendation to the Member (IT) for grant of approval or rejection of the application before the expiry of the period of three months to be reckoned from the end of the month in which the application form was received in his office.
(9) The Central Government may before granting approval under clause (ii) or clause (iii) shall call for such documents or information from the applicant as it may consider necessary and may get any inquiry made for verification of the genuineness of the activity of the applicant.
(10) The Central Government may, under sub-section (1) of section 35, issue the notification to be published in the Official Gazette granting approval to the association or university or college or other institution or for reasons to be recorded in writing reject the application.
(11) The Central Government may withdraw the approval granted under clause (ii) or clause (iii) of sub-section (1) of section 35 if it is satisfied that the research association or university or college or other institution has ceased its activities or its activities are not genuine or are not being carried out in accordance with all or any of the conditions under rule 5D or rule 5E.
(12) No order treating the application as invalid or rejecting the application or withdrawing the approval, shall be passed without giving a reasonable opportunity of being heard to the research association or university or college or other institution.
(13) A copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant, the Assessing Officer and the Commissioner of Income-tax or, as the case may be, the Director of Income-tax.
[See rules 5C and 5D]
Application Form for approval under clause (ii) or clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 in the case of a research association
1. (i) Name and address of the registered office of the Association;
(ii) Enclose a copy of the Trust Deed/Deed of Registration/Memorandum and Articles of Association, and if the Association was approved earlier, furnish approval number and date of the latest notification [Please enclose a copy];
(iii) If approval was withdrawn in the past, mention reasons on account of which the approval was withdrawn [Enclose a copy of the Order/Orders withdrawing approval/approvals];
(iv) Date from which approval is sought for.
2. Legal status of the Association:
Whether Registered Society or Company or Others. (Enclose a copy of certificate of registration/incorporation)
3. Object of the research association.
4. (i) Address(es) of the research laboratory/ research facility of the Association;
(ii) Year of establishment;
(iii) Name and address of the Officer of the Association in-charge of the laboratory/research facility;
(iv) Total number of employees engaged in scientific, social or statistical research activity carried on by the Association.
5. List of research facilities or assets owned by the Association:
(i) Plant and machinery;
(ii) Land and building along with cost of acquisition;
(iii) Any other research facility/asset with cost of acquisition.
6. Research subjects and projects undertaken by the Association:
(i) Research projects completed by the association during the last three years, if any;
(ii) Research projects, which have been taken up during the year and research projects which are underway from the past years;
(iii) Research papers published in any eminent national or International Research Journal.
7. Other details of scientific research or research in social science or statistical research :
(i) New products, processes, methods, techniques developed;
(ii) Improvements in the existing products, processes, methods, techniques;
(iii) Products of import substitution;
(iv) Patents filed, obtained, if any, and if so, in whose name?
(v) Whether products, processes methods and techniques mentioned at (i) above have been commercialized or implemented and if so, by whom?
(vi) New theories/models developed;
(vii) New hypothesis which has been widely accepted;
(viii)Any copyright applied for/obtained;
(ix) Earnings from patents or registered trademarks, if any.
8. Enclose details of seminars, conferences, workshops and training courses, etc., conducted by the Association during the last three years and a brief note regarding the relevance of such exchanges to the research area or activity carried on by the Association.
9. Programmes contemplated for research in future and financial projections to meet the likely expenditure on such programmes.
10. (i) Sources of income of the Association (for the last three years);
(ii) Indicate assessment particulars:
(PAN, Ward/Circle, if assessed to tax)
(iii) When was the last return of income furnished?
11. Amounts received by the research association and actually applied for research by it during the last three years:
Amounts actually utilized for research out of the amounts at column (2)
12. Attach a list of donors giving their names, complete postal addresses and the amounts paid by each of them to the association during the last three years. (Mention PAN of donors paying the sums in excess of fifty thousand rupees)
13. Enclose the copy of audited annual accounts of the association for the last three years.
14. Investments made out of the amounts not utilised for research during the year mentioned at item 10 above:
(i) Fixed deposits with banks;
(ii) Fixed deposits with companies;
(iii) Government securities;
(iv) Shares, Debentures, etc.;
(v) Cash in hand;
(vi) Others, if any, not covered under (i) to (v) Certified that the above information is true to the best of my knowledge and belief.
To be furnished by a research association claiming exemption under section 10(21) Financial Year.______________
1. Total income of the Association including voluntary contributions received during the year.
2. Amount of income referred to at item 1 above that has been or deemed to have been applied wholly and exclusively for the objects of the Association.
3. Amount accumulated for the objects of the Association.
4. (i) Details of modes in which the funds of the association are invested or deposited showing nature, value and income from such investments or deposits.
(ii) Details of funds not invested in modes specified in section 11(5):
Name & address of the concern
In the case of a company – number and class of shares held
Face value of investment
Income from investment
Is the association carrying on any business (give details)?
(ii) Is the business incidental to the attainment of its object?
(iii) Are separate books of account maintained in respect of such business?
6. Details regarding the nature, quantity and value of contributions (other than cash and the manner in which such contribution have been utilised).
7. Details of shares, security or other property purchased by or on behalf of the association from:
(i) the founder of the association;
(ii) any person who has made a contribution exceeding rupees one lakh to the association;
(iii) any member of a Hindu undivided family where the Hindu undivided family is a founder;
(iv) the manager (by whatever name called) of the association;
(v) a relative of the founder, member or the manager;
(vi) any concern in which any of the persons referred to in sub-items (i) to (v) have a substantial interest.
8. Whether any part of the income or any property of the association was used or applied, in a manner which results directly or indirectly in conferring any benefit, amenity or perquisite (whether converted into money or not) on any interested person. If so, the details thereof.
9. Amount deemed to be income of the association by virtue of section 11(3), as applicable by the first proviso to section 10(21).
Certified that the above information is true to the best of my knowledge and belief.
Full Address _____________