WHEREAS by Notification of the Government of India in the Ministry of Finance (Department of Revenue), number S.O. 602(E), dated the 12th August, 1993, issued under 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 had specified at serial number 12, for Medical care to old persons Leprosy and Cancer patients, provision of home to old persons rehabilitation of destitute old women, conducting eye camps by Helpage India, C-14, Qutab Institutional Area, New Delhi-110016 as an eligible project or scheme for a period of two years beginning with assessment year 1994-95 which was extended further vide Notification number S.O. 405(E), dated the 3rd May, 1995 for a period of three years beginning with assessment year 1996-97 which was extended further vide Notification number S.O. 220(E), dated the 16th March, 1998 for a period of three years beginning with assessment year 1999-2000 which was extended further vide Notification number S.O. 553(E), dated the 20th June, 2001 for a period of three years beginning with assessment year 2002-03 which was extended further vide Notification number S.O. 82(E), dated the 24th January, 2005 for a period of three years beginning with financial year 2004-05; which was further extended vide Notification number S.O. 482(E), dated 29-3-2007 for a period of three years beginning with Financial Year 2007-08 and which was extended further vide Notification number S.O. 646(E), dated 22nd March, 2010 for a period of three years beginning with financial year 2010-11;
AND WHEREAS by Notification number S.O. 17(E), dated the 11th January, 1994 the estimated cost was enhanced from Rs. 12.95 lakhs to Rs. 1295.00 lakhs Notification number S.O. No. 510(E), dated the 26th May, 2000 estimated cost was enhanced from Rs. 1295.00 lakhs to Rs. 2000.00 lakhs and Notification number S.O. 1046(E), dated the 18th October, 2001 the estimated cost was enhanced from Rs. 2000.00 lakhs to Rs. 4000.00 lakhs and Notification number S.O. 82(E), dated the 24th January, 2005 the estimated cost was enhanced from Rs. 4000.00 lakhs to Rs. 6500.00 lakhs; S.O. No. 2199(E), dated 12-12-2007 the estimated cost was enhanced from Rs. 65.00 crore to Rs. 95.00 crore; S.O. No. 2616(E), dated 14-10-2009 and the cost was enhanced from Rs. 95.00 crore to Rs. 120.00 crore.
AND WHEREAS the National Committee for Promotion of Social and Economic Welfare, being satisfied that the said project or scheme is being executed properly, made a further recommendation under sub-rule (5) of rule 11M of the Income-tax Rules, 1962 for enhancing the project cost from Rs. 120 crore to Rs. 170 crore.
NOW, THEREFORE, the Central Government, 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), hereby notifies the scheme or project for Medical care to old persons Leprosy and Cancer patients, provision of home to old persons rehabilitation of destitute old women, conducting eye camps which is being carried out by Helpage India, C-14, Qutab Institutional Area, New Delhi-110016,
( b ) further amends the said Notification number S.O. 602(E), dated the 12th August, 1993, to the following effect, namely :—
In the said Notification, in the Table against serial number 12, in column (4) maximum amount of cost to be allowed as deduction under section 35AC of Income-tax Act, 1961, for the letters, figures and word “Rs. 120 crore”, the letters, figures and word “Rs. 170 crore” shall be substituted.
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;