Section 35(1)(ii)
of the Income-tax Act, 1961 - Scientific research expenditure - Approved
scientific research associations/institutions
Notification
No. 58/2010 [F.No.203/105/2003/ITA.II], dated 20-7-2010
It is hereby notified for general information that the organization Astra
Zeneca Research
Foundation India, Bangalore 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 5E of the Income-tax Rules. 1962 (said Rules), for the
period 1-4-2003 to 31-3-2006 in the category of ‘Association’, partly engaged in
research activities subject to the following conditions, namely:-
(i) The sums paid to the
approved organization shall be utilized for scientific
research;
(ii) The approved organization
shall carry out scientific research through its faculty
members or its enrolled students;
(iii) The approved organization shall maintain
separate books of accounts in respect of
the sums received by it for scientific research, reflect therein the amounts used for
carrying out research, 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;
(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 separate books of accounts 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 I;
or
(c) fails to furnish its statement of the donations received
and sums 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 (I) of section 35 of the said Act read with rules 5C and 5E of the said
Rules.