Section 35(1)(iii)
of the Income-Tax Act, 1961 - Scientific research expenditure - Approved
social or statistical research association or institutions
Notification
No. 5/2010 (F.No.203/75/2009/ITA-II), dated 28-1-2010
It is hereby notified for general information that the organization The
Indian Law Institute, New Delhi has
been approved by the Central Government for the purpose of clause (iii)
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)
from
Assessment year 2009-2010 onwards in the category of ‘other
Institution’ partly engaged in research activities
subject to the following conditions, namely:-
(i) The sums paid to the
approved organization shall be utilized for research in social sciences;
-
The
approved organization shall carry out research in social science or statistical 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 research in social sciences and a copy of such statement duly certified by the auditor shall accompany
the report of audit referred to above.
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The
Central Government shall withdraw the approval if the approved organization:-
-
-
fails
to maintain separate books of accounts
referred to in sub-paragraph (iii) of paragraph 1; or
-
fails
to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or
-
fails
to furnish its statement of the donations received and sums applied for research in social
sciences or statistical research referred to in sub-paragraph (iv) of paragraph 1; or
-
ceases
to carry on its research activities or its research activities are not found to be genuine; or
-
ceases
to conform to and comply with the provisions of clause (iii) of sub-section (1) of section 35
of the said Act, read with rules 5C and 5E of the said Rules.