FORM NO. 3CM for Order of Approval of In-House Research and Development Facility. FORM NO. 3CM is related to the prescribe Authority shall, If he is satisfied that the conditions provided in this rule and in sub section (2AB) of sub section 35 are fulfilled, pass an order in writing in Form No. 3CM. Where a company engaged in the business of bio-technology or in any business of manufacture or production of any article or thing, not being an article or thing specified in the list of the Eleventh Schedule]] incurs any expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in-house research and development facility as approved by the prescribed authority, then, there shall be allowed a deduction of a sum equal to two times of the expenditure so incurred.
Explanation.—For the purposes of this clause, “expenditure on scientific research”, in relation to drugs and pharmaceuticals, shall include expenditure incurred on clinical drug trial, obtaining approval from any regulatory authority under any Central, State or Provincial Act and filing an application for a patent under the Patents Act, 1970 (39 of 1970).
(2) No deduction shall be allowed in respect of the expenditure mentioned in clause (1) under any other provision of this Act.
(3) No company shall be entitled for deduction under clause (1) unless it enters into an agreement with the prescribed authority for co-operation in such research and development facility and for audit of the accounts maintained for that facility.
(4) The prescribed authority shall submit its report in relation to the approval of the said facility to the Director General in such form and within such time as may be prescribed.
(5) No deduction shall be allowed in respect of the expenditure referred to in clause (1) which is incurred after the 31st day of March, 2012.
(6) No deduction shall be allowed to a company approved under sub-clause (C) of clause (iia) of sub-section (1) in respect of the expenditure referred to in clause (1) which is incurred after the 31st day of March, 2008.
FORM NO. 3CM
Order of approval of in-house Research and Development facility under section 35(2AB) of the Income-tax Act, 1961
Name, Address and PAN of the company.
Nature of the business of the company – Manufacture/production of article or thing.
Objectives of the scientific research to be conducted by in-house Research and Development facility.
Address at which such Research & Development facility is located.
Ref. No. and date of the application.
The above Research & Development facility is approved for the purpose of section 35(2AB) subject to the conditions underlined therein.
Order No .
(2) The Director General (Income-tax Exemption)