MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 6th September, 2016

S.O. 2882(E).—In exercise of the powers conferred under clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby rescinds the notification of the Government of India, Ministry of Finance, Department of Revenue number 35/2008 dated 14th March, 2008 published in the Gazette of India, Part II, Section 3, Subsection (ii) vide S.O. 798 dated 14th March, 2008 with effect from 1st April, 2007 and shall be deemed that the said notification has not been issued for any tax benefits under the Income-tax Act, 1961 or any other law of the time being in force.

[Notification No. 79/2016/F. No. 203/135/2007/ITA. II]

DEEPSHIKHA SHARMA, Director

NOTIFICATION NO. 35/2008 [SO 798] [F. NO. 203/135/2007/ITA-II], DATED 14-3-2008

It is hereby notified for general information that the organization Herbicure Healthcare Bio-Herbal Research Foundation, Kolkata 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), with effect from 1-4-2007 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 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 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 5E of the said Rules.