SECTION 35(1)(II) OF THE INCOME-TAX ACT, 1961 – SCIENTIFIC RESEARCH EXPENDITURE – APPROVED SCIENTIFIC RESEARCH ASSOCIATIONS/INSTITUTIONS

NOTIFICATION NO. 51/2009, DATED 25-6-2009

It is hereby notified for general information that the organization Physical Research Laboratory, Ahmedabad, has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C and 5D of the Income-tax Rules, 1962 (said Rules) with effect from 1-4-2008 in the category of ‘scientific research association’ subject to the following conditions, namely:—

(i)      The sole objective of the approved ‘scientific research association’ shall be to undertake scientific research;

(ii)     The approved organization shall carry out the scientific research activity by itself;

(iii)    The approved organization shall maintain books of account and get such books audited by an accountant as defined in the explanation to sub-section (2) of section 288 of the said Act and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139 of the said Act;

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(iv)    The approved organization shall maintain a separate statement of donations received and amounts applied for scientific research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to above.

 

2. The Central Government shall withdraw the approval if the approved organization:—

(a)       fails to maintain books of account referred to in sub-paragraph (iii) of paragraph 1; or

(b)       fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or

(c)        fails to furnish its statement of donations received and amounts applied for scientific research referred to in sub-paragraph (iv) of paragraph 1; or

(d)       ceases to carry on its research activities or its research activities are not found to be genuine; or

(e)        ceases to conform to and comply with the provisions of clause (ii) of sub-section (1) of section 35 of the said Act read with rules 5C and 5D of the said Rules.

 

[F. No. 203/16/2009/ITA-II]

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