Form 59, Download Income Tax Form 59 in PDF Format

FORM NO. 59: Application for Approval of Issue of Public Companies under Section 80c (2) Of Income Tax Act, 1961. FORM NO. 59 is required to be made the CBDT, by a public company or a public financial institution 3 months before it makes the eligible issue of capital for the purpose of obtaining approved of the CBDT unless this approval is obtained, subscribers to the issue cannot get the benefit of deduction under that provision.
The Board, before granting approval to a public company, [under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely :—

(1)  An application for approval has been made in the Form No. 59 by the public company three months before the [eligible issue of capital].

[Explanation.—For the purposes of this rule, “the eligible issue of capital” means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.]

(2) Every application shall be accompanied by the following documents, namely :—

(a)  a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956);

(b)  audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :

Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.

(3)  Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :—

(i)  twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board;

(ii)  the balance of such capital shall be invested within a period of three years from the date of approval.

(4)  Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.

(5)  The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be :

Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.

(6)  The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :—

(a)  if such public company fails to make investments as per conditions mentioned in sub-rule (3); or

(b)  if such public company fails to file the certificate referred to in sub-rule (4).]

FORM NO. 59

[See rule 20]

Application for approval of issue of public companies under section 80C (2) (xix) or under section 88(2) (xvi) of the Income-tax Act

1.

Name and address of the public company

 

2.

Date and place of formation/incorporation (enclose a copy of certificate of incorporation under Companies Act, 1956)

 

3.

Nature of business being carried out by the company/number of years in this business

 

4.

Net worth of the applicant (enclose a copy of the latest audited financial statement along with last three years audited balance sheet)

 

5.

The total capital the applicant company proposes to raise through the present equity/debenture issue

 

6.

The objects of the present equity/debenture issue

 

7.

whether the present equity/debenture issue conform to the definition of ‘infrastructure facility’ as defined in the Explanation to clause (i) of sub-section (4) of section 80-IA of the Income-tax Act ? If so, give details.

8. Details of the eligible issue of capital


Number

Face Value

Premium/ discount

– Equity Shares

 

– Preferential Shares

 

– Debentures

(Enclose SEBI’s approval)
9. Nature and location of proposed infrastructure facility/power project (enclose clearance of the concerned authorities and agreement executed with the Government or Government bodies, if any)

 

10. Approximate year-wise investment required

11. Sources of proposed investment:


(i) Eligible issue of the capital

 


(ii) Other sources

12. Schedule of development of infrastructure facility/ power project


(a) Planned date of commencement of project

 


(b) Planned date of commencement of operation of the project

 

13.

Accounting policies (furnish the description of significant accounting policies)

14. Details of management:

(a) Names of directors with their experience, qualifications and profession

(b) Names of the key personnel

(c) Organizational structure

(d) Board of directors of associate organisations, companies and their subsidiaries

 

15.

Names and addresses of the bankers

 

16.

Names and addresses of the auditors

 

17.

Copy of the project report, if any.

 

 

I certify that the information furnished above is true to the best of my knowledge and belief.

Signatures of the authorised signatory

 

 

 

 

 

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