Expenditure on Notified Eligible Projects or Schemes, Notification Issued On 9-3-2012

In exercise of the powers conferred by sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government, on the recommendations of the National Committee for Promotion of Social and Economic Welfare, hereby notifies the institutions approved by the said National Committee, mentioned in column (2) of the Table below, and approves the eligible projects or schemes specified to be carried on by the said institutions and the estimated cost thereof as mentioned in column (3) of the said Table, and also specifies in the column (4) of the Table the maximum amount of such cost which may be allowed as deduction under the said section 35AC for the period of approval, namely:-

Name of the Institution

Sir Sayyad Educational Society, Teli Wala, Opp Sophia Public School, Near Railway Station, Roorke, Haridwar, Uttar Pradesh-247 001.

Red Plus Society, 22, Baghajatin Station Road, Kolkata 700 032.

Gram Bharati Samiti (GBS), Amber Bhawan, Amber, Jaipur 302 028, Rajasthan.

Shree Navchetan Andhjan Mandal, Opposite Kachchh Dairy, Post Box No. 12, Madhapar 370 020, Taiuka Bhuj, District Kachchh, Gujarat.

Jamia Islamia Ishaatul Uloom, Amlibari Molgi Road, A/P Akkalkuwa, District Nandurbar, Maharashtra 425 415.

Subhash Anna Kool Shikshan Prasarak Mandal, At/Post-Rahu, Tal Daund, District Pune, Maharashtra.

Umang Charitable trust, 93/924, Siddhivinayak C.H.S Behind Bharat Petrol Pump, Link Road, Mahavir Nagar, Kandivali (W), Mumbai 67.

Manakchand Prabhudan Charitable Trust, Lohia Marg, Kamptee. Maharashtra-441 002

VAANI, Deaf Children’s Foundation, 9D, Aiuiapurna Apartments, 68 Ballygunge Circular Road, Kolkata-700 019.

Sree Lakshmi Jabbi Reddy Charitable Trust Obulavari Palli (Post & Mandal), Kodur (Tq.) Kadapa (district), Andhra Pradesh 516 108.

Rewachand Bhojwani Foundation, 31-32, Wonderland, 7 M.G Road, Pune, Maharashtra-411 001.

Lions Club Care Foundation Charitable Trust, 10th Sneh Bunglow, Chandani Chowk, District Sangli – 416 146, Maharashtra

II. This notification shall remain in force for a period of three years in relation to financial years 2012-13, 2013-14 & 2014-15 in respect of projects or schemes mentioned at serial numbers 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 & 12 of the said table.

Reference: Section 35AC of the income Tax Act, 1961

Expenditure on eligible projects or schemes

(1) Where an assessee incurs any expenditure by way of payment of any sum to a public sector company or a local authority or to an association or institution approved by the National Committee
for carrying out any eligible project or scheme, the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount of such expenditure incurred during the previous year :

Provided that a company may, for claiming the deduction under this sub-section, incur expenditure either by way of payment of any sum as aforesaid or directly on the eligible project or scheme.

(2) The deduction under sub-section (1) shall not be allowed unless the assessee furnishes along with his return of income a certificate—

(a)  where the payment is to a public sector company or a local authority or an association or institution referred to in sub-section (1), from such public sector company or local authority or, as the case may be, association or institution;

(b)  in any other case, from an accountant, as defined in the Explanation below sub-section (2) of section 288,

in such form, manner and containing such particulars (including particulars relating to the progress in the work relating to the eligible project or scheme during the previous year) as may be prescribed.

Explanation.—The deduction, to which the assessee is entitled in respect of any sum paid to a public sector company or a local authority or to an association or institution for carrying out the eligible project or scheme referred to in this section applies, shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee,—

(a)  the approval granted to such association or institution has been withdrawn; or

(b)  the notification notifying the eligible project or scheme carried out by the public sector company or local authority or association or institution has been withdrawn.]

(3) Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure referred to in sub-section (1), deduction shall not be allowed in respect of such expenditure under any other provision of this Act for the same or any other assessment year.

(4) Where an association or institution is approved by the National Committee under sub-section (1), and subsequently—

 (i)  that Committee is satisfied that the project or the scheme is not being carried on in accordance with all or any of the conditions subject to which approval was granted; or

(ii)  such association or institution, to which approval has been granted, has not furnished to the National Committee, after the end of each financial year, a report in such form and setting forth such particulars and within such time as may be prescribed,

the National Committee may, at any time, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned association or institution, withdraw the approval:

Provided that a copy of the order withdrawing the approval shall be forwarded by the National Committee to the Assessing Officer having jurisdiction over the concerned association or institution.

(5) Where any project or scheme has been notified as an eligible project or scheme under clause (b) of the Explanation, and subsequently—

 (i)  the National Committee is satisfied that the project or the scheme is not being carried on in accordance with all or any of the conditions subject to which such project or scheme was notified; or

(ii)  a report in respect of such eligible project or scheme has not been furnished after the end of each financial year, in such form and setting forth such particulars and within such time as may be prescribed,

such notification may be withdrawn in the same manner in which it was issued:

Provided that a reasonable opportunity of showing cause against the proposed withdrawal shall be given by the National Committee to the concerned association, institution, public sector company or local authority, as the case may be:

Provided further that a copy of the notification by which the notification of the eligible project or scheme is withdrawn shall be forwarded to the Assessing Officer having jurisdiction over the concerned association, institution, public sector company or local authority, as the case may be, carrying on such eligible project or scheme.]

(6) Notwithstanding anything contained in any other provision of this Act, where—

 (i)  the approval of the National Committee, granted to an association or institution, is withdrawn under sub-section (4) or the notification in respect of eligible project or scheme is withdrawn in the case of a public sector company or local authority or an association or institution under sub-section (5); or

(ii)  a company has claimed deduction under the proviso to sub-section (1) in respect of any expenditure incurred directly on the eligible project or scheme and the approval for such project or scheme is withdrawn by the National Committee under sub-section (5),

the total amount of the payment received by the public sector company or the local authority or the association or the institution, as the case may be, in respect of which such company or authority or association or institution has furnished a certificate referred to in clause (a) of sub-section (2) or the deduction claimed by a company under the proviso to sub-section (1) shall be deemed to be the income of such company or authority or association or institution, as the case may be, for the previous year in which such approval or notification is withdrawn and tax shall be charged on such income at the maximum marginal rate in force for that year.]

Explanation.—For the purposes of this section,—

(a)  “National Committee” means the Committee constituted by the Central Government, from amongst persons of eminence in public life, in accordance with the rules made under this Act;

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