NOTIFICATION

INCOME-TAX ACT

Section 35AC, sub-section (1) read with Explanation (b) thereto, of the Income-tax Act, 1961 - Eligible projects or schemes, expenditure on - Notified eligible projects or schemes

NOTIFICATION NO. 94/2009 [F. NO. NC-274/12/2009]/SO 2056(E), DATED 6-8-2009

Whereas by notification of the Government of India, in the Ministry of Finance (Department of Revenue) number S.O.1140(E), dated the 18th November, 1999, 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 3, "Construction of building for old age home complex at Srikakulam, Andhra Pradesh" by Srikakulam Vayodhikula Sangham, (Srikakulam Elders Association), D.No.7-6-44, Burravari Thota, Srikakulam, Andhra Pradesh-532001 as an eligible project or scheme for a period of three years beginning with assessment year 2000-2001 which was extended further vide notification number S.O.975(E), dated the 10th  September, 2002 for a period of two years beginning with assessment year 2003-04 and which was extended further vide notification number S.0.388(E), dated the 23rd October, 2005 for a period of two years beginning with financial year 2004-05 and which was extended further vide notification number S.0.388(E), dated the 23rd October, 2005 for a period of three years beginning with financial year 2006-07;

And whereas by notification number S.O.529(E), dated the 9th May, 2003, the estimated cost was enhanced from Rs. 23.93 lakhs to Rs. 23.93 lakhs plus a corpus fund of Rs. 15.00 lakhs and vide notification No.388(E), dated the 23rd March 2005 the estimated cost was further enhanced from Rs. 23.93 lakhs plus a corpus fund of Rs. 15.00 lakhs to Rs. 23.93 lakhs plus a corpus fund of Rs. 20.00 lakhs;

And whereas the said project or scheme is likely to extend beyond ten 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 specifying the said project or scheme for a further period of three years and amending the project cost from Rs. 23.93 lakhs plus a corpus fund of Rs. 20.00 lakhs to Rs. 30.00 lakhs plus a corpus fund of Rs. 20.00 lakhs;

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 -

1. specifies the scheme or project "Construction of building for old age home complex at Srikakulam, Andhra Pradesh", which is being carried out by Srikakulam Vayodhikula Sangham, (Srikakulam Elders Association), D.No.7-6-44, Burravari Thota, Srikakulam, Andhra Pradesh-532001 as an eligible project or scheme for a further period of three years beginning with financial year 2009-10 i.e. 2009-10, 2010-11 and 2011-12; and

2.  further amends the said notification number S.O.1140(E), dated the 18th November, 1999, to the following effect, namely :-

In the said notification, in the Table against serial number 3, in column (4), relating to maximum amount of cost to be allowed as deduction under section 35 AC, for the letters, figures and word "Rs. 23.93 lakhs plus a corpus fund of Rs. 20.00 lakhs", the letters, figures and word "Rs. 30.00 lakh plus a corpus fund of Rs. 20.00 lakhs" shall be substituted.

[No. 94/2009/F. No. NC-274/12/2009]