Expenditure on Notified National Committee Constituted For Promotion of Social and Economic Welfare and Appointment of New Chairman and Members of Committee, Notification Issued On 1-2-2011

WHEREAS in exercise of the powers conferred by section 35AC of the Income-tax Act, 1961 read with rule 11G of the Income-tax Rules, 1962, the Central Government constituted the National Committee for Promotion of Social and Economic Welfare vide notification of the Government of India, Ministry of Finance (Department of Revenue) number S.O. 5(E), dated the 2nd January, 1992 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the 2nd January, 1992 as amended by notification number S.O. 926(E), dated the 22nd December, 1994; notification number S.O. 892(E), dated the 23rd December, 1997; notification number S.O. 444(E), dated the 21st May, 2001; notification number S.O. 1258(E), dated the 9th November, 2004 and notification number 227(E), dated 1st February, 2008;

AND WHEREAS , in terms of sub-rule (1) of Rule 11G of the Income-tax Rules,1962, by the aforesaid notification, fourteen person were appointed by the Central Government as Chairman and members of the said Committee;

AND WHEREAS , the term of the Chairman and members of the aforesaid Committee ended on 31st January, 2011.

NOW, THEREFORE , in exercise of the powers conferred by section 35AC of the Income-tax Act, 1961 (43 of 1961) read with sub-rules (1) and (3) of rule 11G of the Income-tax Rules, 1962, the Central Government hereby appoints the following persons as Chairman and members of the National Committee for Promotion of Social and Economic Welfare for a period of three years commencing on the date of this notification:

1.

Justice S.P. Bharucha

Former Chief Justice of India

—Chairman

2.

Dr. Kaanchana Kamalanathan

Medical Doctor, Social & Political Worker and Former Member of Legislative Assembly

—Member

3.

Ms. Veena Singh

Chairperson, Indian National Trade Union Congress

—Member

4.

Prof.(Ms.) Sabra Habib

Senior Professor, Lucknow University

—Member

5.

Shri Bhagirath Prasad

Retd . IAS & Ex Vice Chancellor, DeviAhilyaVishwavidyala, Indore

—Member

6.

Dr. Md. Abbas Ali

Professor of Business Management, Former Dean, Osmania University, Hyderabad

—Member

7.

Prof. Margaret Ch. Zama

Professor, Department of English, Mizoram University Mizoram and Founder Member of Spastic Society of Mizoram

—Member

8.

Dr. J. Prabhakar Reddy

Medical Doctor and Chairman, Shree Lakshmi Jabbi Reddy Charitable Trust, Tirupati, Andhra Pradesh

—Member

9.

Ms. Atiya Habib Kidwai

Professor, Centre for Study of Regional Development, Jawaharlal Nehru University, Delhi

—Member

10.

Shri D.R. Mehta

Padam Bhushan, Retd. IAS & Founder & Chief Patron of Bhagwan Mahaveer Viklang Sahayata Samiti, Jaipur

—Member

11.

Shri Michael Ferrira

Four time World Champion in Billiards and Snooker

—Member

12.

Shri Amardeep Singh Cheema

Vice Chairman, Nehru Yuva Kendra Sangathana, and Social Activist

—Member

13.

Dr. Jatin De

Founder Director of PSU Foundation, Lucknow and expert in water and natural resources management

—Member

14.

Shri Sanjiv Kumar Arora

Chartered Accountant

—Member

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

(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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