NOTIFICATION NO. 122/2006, DATED 16-5-2006
In exercise of the powers conferred by the sub-clause (iv ) of clause (23C) of section 10 of the Income-tax Act 1961 (43 of 1961), the Central Government hereby notifies that any income received by any person on behalf of “Jehangir Art Gallery, Mumbai” (hereinafter referred to as the ‘Institution’) shall not be included in the total income of such person as assessable for the assessment years 2006-07 to 2008-09 subject to the following conditions namely:-
(i) the Institution will apply its income, or accumulate for application, wholly and exclusively to the objects for which it is established and in a case where more than fifteen per cent of its income is accumulated on or after the 1st day of April, 2002, the period of the accumulation of the amount exceeding fifteen per cent of its income shall in no case exceed five years;
(ii) the Institution will not invest or deposit its fund (other than voluntary contributions received and maintained in the form of jewellery, furniture etc.) for any period during the previous years relevant to the assessment years mentioned above otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11;
(iii) This notification will not apply in relation to any income being profits and gains of business, unless the business is incidental to the attainment of the objectives of the Institution and separate books of account are maintained in respect of such business;
(iv)the Institution will regularly file its return of income before the Income-tax authority in accordance with the provisions of the Income-tax Act, 1961;
(v)that in the event of dissolution of the Institution, its surplus and the assets will be given to an organization with similar objectives.
This notification is applicable only to the recipients of income on behalf of the Institution and not to any other receipt or income of such recipients. Taxability, or, otherwise, of the income of the Institution would be separately considered as per the provisions of the Income-tax Act 1961.