SECTION 35(1)(ii) OF THE INCOME-TAX ACT, 1961 - SCIENTIFIC RESEARCH EXPENDITURE - APPROVED SCIENTIFIC RESEARCH ASSOCIATIONS/INSTITUTIONS
- NATIONAL INSTITUTE OF OCEAN TECHNOLOGY, CHENNAI
NOTIFICATION NO. 45/2012 [F. NO. 203/51/2011/ITA-II], DATED 29-10-2012
It is hereby notified for general information that the organization National Institute of
Ocean Technology, Chennai 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), from
assessment year 2011-12 onwards in the category of "Scientific Research
Association", engaged in research in science 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 account 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
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 the
donations received and sums applied for research in social science or
statistical 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 (iii) of sub-section (1) of section 35 of the said Act read with rules 5C and 5E of the said Rules.
