SECTION 35AC, READ WITH EXPLANATION (B) THERETO, OF THE INCOME-TAX ACT, 1961 – ELIGIBLE PROJECTS OR SCHEMES, EXPENDITURE ON – NOTIFIED ELIGIBLE PROJECTS OR SCHEMES – SWA-ROOPWARDHINEE, MAHARASHTRA
NOTIFICATION NO. 55/2011[F.NO. V-27015/2/2011-SO (NAT.COM)]/S.O. 1375(E), DATED 14-6-2011
Whereas by Notification of the Government of India in the Ministry of Finance (Department of Revenue) Number S.O. 121(E), dated 12th January, 2009, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial Number 34, Integrated Development of boys, girls and women from slum dwellers Construction and Development of a multifaceted training centre by Swa-Roopwardhinee, 22/1, Mangalwar Peth, Parge Chowk, Pune 411011, Maharashtra, as an eligible project or scheme for a period of three years beginning with financial year 2008-09;
And whereas the said project or scheme is likely to extend beyond three years;
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 extending the said project or scheme for a further period of three year;
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 Integrated Development of boys, girls and women from slum dwellers Construction and Development of a multifaceted training centre, which is being carried out by Swa-Roopwardhinee, 22/1, Mangalwar Peth, Parge Chowk, Pune 411011, Maharashtra, without any change in the approved cost of Rs. 1.45 crore, as an eligible project or scheme for a further period of three financial years commencing with the financial year 2011-12 i.e. 2011-12, 2012-13 & 2013-14.
The point raised by N. Dey are very relevant to those who are associated with social and charitable organisations of native origin having no foreign connections whatsoever, unlike those multi-national, foreign based NGOs who maintain huge paraphernalia at great cost to raise donations and also get FCRA and other approvals just for their asking due to their high-profile and hugely paid executives from the families of top bureaucrats. The small organisations with very little funds and outreach to raise donations are too poor to “pay” for obtaining the approvals of section 35AC of IT Act and FCRA and, everybody knows, without payment of bribe nothing is available in Delhi. Can some media personality take up the case for the native charitable institutions? Why must they alone be discriminated against in matters of 35AC IT Act and FCRA merely for their inability to “follow up and pursue” (that is pay bribe) their petitions which are genuine and valid?
There are most disturbing news of the National Committee for Promotion of Social and Economic Welfare not meeting regularly, for months at times, as a result of which the number of pending applications u/s 35AC is very huge. There are also reports that the National Committee for Promotion of Social and Economic Welfare disposes of the applications most summarily, entirely guided by the secretariat (the CBDT) which has a rather dubious role in the matter. This can be proven by the rejection of applications from some most genuine organisations carrying on their sterling activities for spreading education, upliftment of the poor, providing healthcare to the poor, etc. It is suggested, in the context of the raging battle on the Lokpal Bill and the apex court’s order creating an SIT for black money, a thorough enquiry must be made in the manner of the rejection of applications and the pace of disposal of aoolications by the National Committee for Promotion of Social and Economic Welfare. Along with this, the pending files/applications must also be investigated to see as to how the CBDT sits over the applications for years waiting for the interested parties to approch the officials either directly or (preferably) through specified Delhi-based agents/agencies/professional representatives. The number of applications rejected without affording any opportunity to the applicants will thoroughly expose the true state ofr affairs in this matter. As the govt. agencies do not take any interest whatsoever, the NAC with its ever alert Chairperson alone can stem the rot in this regard.