India - Income Tax Act 2010 - Saarc

S. 35AC I.T. ACT, 1961 1.220or institution approved 36 by the National Committee 37 for carrying out anyeligible project or scheme, the assessee shall, subject to the provisions of thissection, be allowed a deduction of the amount of such expenditure incurredduring the previous year :Provided that a company may, for claiming the deduction under this sub-section,incur expenditure either by way of payment of any sum as aforesaid or directlyon the eligible project or scheme.(2) The deduction under sub-section (1) shall not be allowed unless the assesseefurnishes along with his return of income a certificate—38(a) where the payment is to a public sector company or a local authorityor an association or institution referred to in sub-section (1), fromsuch public sector company or local authority or, as the case may be,association or institution;39(b) in any other case, from an accountant, as defined in the Explanationbelow sub-section (2) of section 288,in such form, manner and containing such particulars (including particularsrelating to the progress in the work relating to the eligible project or schemeduring the previous year) as may be prescribed.40[Explanation.—The deduction, to which the assessee is entitled in respect of anysum paid to a public sector company or a local authority or to an association orinstitution for carrying out the eligible project or scheme referred to in thissection applies, shall not be denied merely on the ground that subsequent to thepayment of such sum by the assessee,—(a) the approval granted to such association or institution has beenwithdrawn; or(b) the notification notifying the eligible project or scheme carried out bythe public sector company or local authority or association or institutionhas been withdrawn.](3) Where a deduction under this section is claimed and allowed for anyassessment year in respect of any expenditure referred to in sub-section (1),deduction shall not be allowed in respect of such expenditure under any otherprovision of this Act for the same or any other assessment year.36. The prescribed authority under rule 11L is Secretary to National Committee for Promotionof Social and Economic Welfare, Department of Revenue, Government of India. Seerule 11L for form of application (in two sets) to be submitted for approval of association/institution or for recommendation of project/scheme.37. For constitution of National Committee for Promotion of Social and Economic Welfareand appointment of members thereof, see Taxmann’s Direct Taxes Circulars andTaxmann’s Yearly Tax Digest & Referencer.38. See rule 11-O(1) and Form No. 58A for certificate of expenditure by way of payment quaeligible projects/schemes from public sector company/local authority, etc. Rule 12provides that the return of income shall not be accompanied by any document or copy ofany account or form or report of audit required to be attached with return of incomeunder any of the provisions of the Act.39. See rule 11-O(2) and Form No. 58B for certificate of payment/expenditure directlyincurred by company qua eligible projects/schemes from chartered accountant. Rule 12provides that the return of income shall not be accompanied by any document or copy ofany account or form or report of audit required to be attached with return of incomeunder any of the provisions of the Act.40. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006.