Institute of Rural Management, Anand, Gujarat, approved by the Central Government U/s. 35(1) (iii) as research institutions

Section 35(1)(iii) of the Income-tax Act, 1961 – Scientific research expenditure – Approved social science or statistical research or associations or institutions

Notification No. 60/2009, dated 31-7-2009


It is hereby notified for general information that the organization Institute of Rural Management, Anand, Gujarat 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 2008-09 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;

(ii) 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 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 research in social sciences 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 sciences 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.

The Eye Research Foundation, Chennai, approved by the Central Government U/s. 35(1)(iii) as research institutions

Section 35(1)(ii) of the Income-tax Act, 1961 – Scientific research expenditure – Approved scientific research associations/institutions

NOTIFICATION NO. 57/2009, Dated 9-7-2009

It is hereby notified for general information that the organization Eye Research Centre, 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), with effect from 1-4-2009 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) To 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.


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 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.

Empanelment of CA Firms with Serious Fraud Investigation Office (SFIO) - (23-02-2009)

Serious Fraud Investigation Office has invited applications from Chartered Accountants empanelled with the office of C&AG and who may like to be associated with SFIO for carrying out forensic examination of records of companies ordered for investigation by the government.

Serious Fraud Investigation Office, Ministry of Corporate Affairs intends to outsource certain Forensic Audit services in cases under investigation. The interested firms/ individuals empanelled with the CAG office or the Cost Auditing firms with expertise in forensic investigation field may apply immediately furnishing therewith, their expertise in the area of Forensic Accounting and audit including Cyber Forensic, the software that will be used and details of any Government/Public Sector or other undertaking where their services had been used. The interested firm shall be paid at the rate of Rs. 5000/- per day, for a team consisting of at least five individuals, with service tax and government dues extra.

Those interested may write at the following address:

Director
Serious Fraud Investigation Office (SFIO)
Paryavaran Bhawan
2nd Floor, CGO Complex
Lodhi Road
New Delhi- 110 003

Whether Assessing Officer can drop penalty proceedings without giving detailed reasons thereof

*Penalty Order*
*Toyota Motor Corporation Vs. CIT * 08/25/2008
[2008] 306 ITR 52 (SC)

Case Fact: Whether Assessing Officer can drop penalty proceedings without
giving detailed reasons thereof?

Decision: Held by the Hon`able Court that the Assessing Officer cannot drop
penalty proceedings without giving detailed reasons thereof. An assessing
officers duty is not discharged merely because the tribunal has held that
the officer had gone into facts and had not proceeded casually.

Information regarding Association with Public Sector Banks - (22-12-2008)

The Institute has been receiving a number of complaints from Members to
the effect that in the interval between sending the application for Bank
empanelment and allotment of Bank audits, they have accepted concurrent
audit and similar assignments in various Banks, and thereafter, they find
that they have been allotted audits in those Banks where they are already
engaged in such assignments. This has caused hardship to them. Similar
problems are faced by those who have accepted the Directorship or have
availed loan from Public Sector Banks (including outstandings in respect of
credit cards)/given any guarantee in respect of any loan etc. In view of
the situation, this matter was taken up with the RBI. Accordingly firms/
Members who apply for Bank Empanelment and subsequently accept other
assignments from Banks or get associated as Directors or are indebted or
give guarantee should therefore inform the Institute *in the following Form,
* the details of such engagements accepted after submission of Multipurpose
Empanelment Form to the Institute. It should be noted that assignments
accepted which are not informed to the Institute by the 15th January, 2009,
will not be forwarded by the Institute to the RBI, and in such cases the RBI
may allot audits in the same banks where they are otherwise engaged. *FORM
FOR INTIMATING THE ICAI ABOUT ENGAGEMENTS
ACCEPTED*

http://www.icai.org/resource_file/14372announ221208.pdf

Additional statement to be furnished for approval u/s 35

Notification No. 2/2009, dated 5.1.2009

The Government has amended Rules 5D and 5E pertaining to conditions for approval to a scientific research association u/s 35(1)(ii) or to a university, college or other institution u/s 35(1)(ii)/(iii), to provide that such association shall, by the due date of furnishing the return of income u/s 139(1), furnish a statement to CIT/DIT containing (i) a detailed note on the research work undertaken by it during the previous year; (ii) a summary of research articles published in national or international journals during the year; (iii) any patent or other similar rights applied for or registered during the year; (iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme.

Government notifies NHB Deposit Scheme u/s 80C

Notification No. 3/2009, dated 5.1.2009


The Government has notified that subscription to National Housing Bank (Tax Saving) Term Deposit Scheme, 2008 shall qualify for deduction under section 80C.

Government notifies conditions for pre-paid meal cards for the purpose of FBT

Notification No. 1/2009, dated 5.1.2009

As per section 115WB(2)(B)(iii), inserted from the assessment year 2009-10, hospitality expenditure for the purpose of levy of FBT, does not include any expenditure on or payment through non-transferable pre-paid electronic meal card usable only at eating joints or outlets and which fulfils other prescribed conditions. CBDT has now notified Rule 40E prescribing such conditions. Following conditions have been prescribed:

(i) The card shall be granted by the employer to its employees under a scheme framed by the employer specifying therein the circumstances under which the meal card can be used by the employee.

(ii) The card shall be issued by the issuing bank.

(iii) An employee shall not be issued more than one card.

(iv) The card shall bear the name of the employer along with the name, photograph and signature of the employee to whom the card is issued.

(v) The card shall be used only by the employee to whom the card is issued.

(vi) The card shall be used by the employee only for the purpose of purchasing ready to eat food or non-alcoholic beverage from a member establishment.

(vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees.

(viii) The details of each transaction of purchases made by the employee against the card shall be maintained by the employer and the member establishment in such manner and for such period as is required under the Act for any other similar transaction.