Executive Summary:
This notification, issued by the Central Board of Direct Taxes, approves the Ms Center of Innovative Applied Bioprocessing (CIAB) as a Scientific Research Association under Section 35 of the Income-tax Act, 1961, effective from the assessment year 2016-2017. The approval is subject to specific conditions regarding the conduct of scientific research, maintenance of accounts, and auditing. The notification was issued on January 31, 2017.
Key Points / Main Content:
Approval Details:
* Ms Center of Innovative Applied Bioprocessing (CIAB) is approved as a Scientific Research Association.
* The approval is granted under clause (ii) of subsection (1) of section 35 of the Income-tax Act, 1961, read with Rules 5C and 5D of the Income-tax Rules, 1962.
* The approval is effective from the assessment year 2016-2017 onwards.
Conditions for Approval:
* The sole objective of CIAB must be to undertake scientific research.
* CIAB must carry out scientific research by itself.
* CIAB must maintain separate books of accounts for scientific research sums received.
* CIAB's books must be audited by an accountant, and an audit report must be furnished to the relevant tax authority by the due date for income tax return filing under subsection (1) of section 139 of the Income-tax Act.
* CIAB must maintain a separate statement of donations received and amounts applied for scientific research, certified by an auditor, accompanying the audit report.
Withdrawal of Approval:
* The Central Government may withdraw approval if CIAB:
* Fails to maintain separate books of accounts.
* Fails to furnish its audit report.
* Fails to furnish its statement of donations received and sums applied for scientific research.
* Ceases to carry on its research activities or its research activities are not genuine.
* Ceases to comply with the provisions of clause (ii) of subsection (1) of section 35 of the said Act read with rules 5C and 5D of the said Rules.
Impact Analysis:
Ms Center of Innovative Applied Bioprocessing (CIAB):
Impact: CIAB is now recognized as an approved Scientific Research Association, potentially providing benefits related to tax exemptions or deductions for donations received for scientific research purposes.
Action Required: CIAB must adhere to all conditions stipulated in the notification, including maintaining separate accounts, undergoing audits, and submitting required reports to the tax authorities to maintain its approved status.
Commissioner of Income-tax or the Director of Income-tax:
Impact: They are responsible for overseeing CIAB's compliance with the conditions of approval.
Action Required: They must review the audit reports submitted by CIAB and ensure that CIAB adheres to the requirements outlined in the notification.
Donors to CIAB:
Impact: Donations to CIAB may be eligible for tax benefits, provided CIAB maintains its approved status.
Action Required: Donors should verify CIAB's continued compliance with Section 35 of the Income-tax Act to ensure their donations remain eligible for tax benefits.
Key Entities Referenced
New Delhi: The city where the notification was issued.
Ministry of Finance: The ministry under which the Department of Revenue operates.
Department of Revenue: The department under which the Central Board of Direct Taxes operates.
Central Board of Direct Taxes: The organization that issued the notification.
Incometax Act, 1961: The Act referred to in the notification, specifically section 35.
Incometax Rules, 1962: The rules referred to in the notification, specifically Rules 5C and 5D.
Ms Center of Innovative Applied Bioprocessing CIAB: Organization approved by the Central Government.
Mayapuri, New Delhi: Location of the Government of India Press.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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No. 303] NEW DELHI, THURSDAY, FEBRUARY 2, 2017/MAGHA 13, 1938
िव(cid:7004)त म(cid:7074)ं ालय
(राज(cid:7021)व िवभाग)
(क(cid:7286)(cid:7076)ीय (cid:7079)(cid:7004)य (cid:6979) कर बोड(cid:6981))
अिधसचू ना
नई (cid:7408)द(cid:7016) ली, 31 जनवरी, 2017
का.आ. 336(अ).—सव(cid:6981)साधारण क(cid:7409) जानकारी के िलए एत(cid:7367)ारा यह अिधसूिचत (cid:7408)कया जाता ह ै (cid:7408)क क(cid:7286)(cid:7076) सरकार (cid:7367)ारा
आयकर िनयमावली, 1962 (उ(cid:6989) त िनयमावली) के िनयम 5ग और 5ड. के साथ प(cid:7407)ठत आयकर अिधिनयम, 1961 (उ(cid:6989) त
अिधिनयम) क(cid:7409) धारा 35 क(cid:7409) उपधारा (1) के खंड (ii) के (cid:7079)योजनाथ(cid:6981) मैसस(cid:6981) नवाचार के(cid:7008)(cid:7076) एवं (cid:7079)यु(cid:7334) वायो(cid:7079)ोसे(cid:7410)सग
(पैनः-एएबीएबी8297एन) नामक संगठन को िनधा(cid:6981)रण वष (cid:6981) 2016-17 और इससे आगे क(cid:7409) अविध के िलए िन(cid:7013) निलिखत शत(cid:7300) के
अधीन ‘वै(cid:6980)ािनक अनुसंधान संघ’ क(cid:7409) (cid:7088)ेणी म(cid:7286) अनुमो(cid:7408)दत (cid:7408)कया जाता ह,ै नामत:-
(i) अनुमो(cid:7408)दत सगं ठन वै(cid:6980)ािनक अनुसंधान सघं का कुल उ(cid:7374)े(cid:7019)य वै(cid:6980)ािनक अनुसंधान के िलए होगा।
(ii) अनुमो(cid:7408)दत संगठन अपन े (cid:7367)ारा वै(cid:6980)ािनक अनुसंधान करेगा;
(iii) अनुमो(cid:7408)दत सगं ठन ‘सीआईएबी हते ’ु वै(cid:6980)ािनक अनुसंधान के िलए इसके (cid:7367)ारा (cid:7079)ा(cid:7009) त रािश के संबंध म (cid:7286) अलग लेखा बिहयां
रखेगा िजनम (cid:7286) अनुसंधान करने के िलए (cid:7079)यु(cid:6989) त रािश दशा(cid:6981)ई गई हो, ऐसी खाता बिहय(cid:7298) क(cid:7409) उ(cid:6989) त अिधिनयम क(cid:7409) धारा 288 क(cid:7409) उप
धारा (2) के (cid:7021)प (cid:7020) टीकरण म(cid:7286) यथा प(cid:7407)रभािषत (cid:7408)कसी लेखाकार से लेखा परी(cid:6979)ा कराएगा और उ(cid:6989) त अिधिनयम क(cid:7409) धारा 139 क(cid:7409)
उपधारा (1) के अंतग(cid:6981)त आय िववरणी (cid:7079)(cid:7021) तुत करने क(cid:7409) िनयत ितिथ तक ऐसे लेखाकार (cid:7367)ारा िविधवत स(cid:7004) यािपत एवं ह(cid:7021) ता(cid:6979)(cid:7407)रत
लेखा परी(cid:6979)ा (cid:7407)रपोट(cid:6981) मामले म (cid:7286)(cid:6979)े(cid:7074)ािधकार रखन े वाले आयकर आयु(cid:6989)त अथवा आयकर िनदेशक को (cid:7079)(cid:7021) ततु करेगा;
(iv) अनुमो(cid:7408)दत संगठन वै(cid:6980)ािनक अनुसंधान के िलए (cid:7079)ा(cid:7009) त दान तथा (cid:7079)यु(cid:6989) त रािश का अलग िववरण रखगे ा और उपयु(cid:6981)(cid:6989) त लेखा
परी(cid:6979)ा (cid:7407)रपोट(cid:6981) के साथ लेखा परी(cid:6979)क (cid:7367)ारा िविधवत स(cid:7004) यािपत ऐसे िववरण क(cid:7409) (cid:7079)ित (cid:7079)(cid:7021)त ुत करेगा।
2. क(cid:7286)(cid:7076) सरकार यह अनुमोदन वापस ले लगे ी य(cid:7408)द अनुमो(cid:7408)दत संगठन:-
(क) पैरा(cid:7061)ाफ 1 के उप-पैरा(cid:7061)ाफ (iii) म(cid:7286) यथा उि(cid:7016)ल िखत अलग लेखा बिहयां रखन ेम(cid:7286) असफल रहता ह;ै अथवा
(ख) पैरा(cid:7061)ाफ 1 के उप-पैरा(cid:7061)ाफ (iii) म(cid:7286) यथा उि(cid:7016)ल िखत अपनी लेखा परी(cid:6979)ा (cid:7407)रपोट (cid:6981)(cid:7079)(cid:7021) ततु करने म (cid:7286)असफल रहता ह;ै अथवा
567 GI/2017 (1)
(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ग) पैरा(cid:7061)ाफ 1 के उप-पैरा(cid:7061)ाफ (iv) म(cid:7286) यथा उि(cid:7016) लिखत वै(cid:6980)ािनक अनुसंधान के िलए (cid:7079)ा(cid:7009) त दान एवं (cid:7079)यु(cid:6989) त धनरािश का िववरण
(cid:7079)(cid:7021) तुत करन ेम(cid:7286) असफल रहता ह;ै अथवा
(घ) अपन े अनुसंधान काय(cid:6981) कलाप(cid:7298) को करना बंद कर देता ह ै अथवा इसके अनुसंधान काय(cid:6981) कलाप(cid:7298) को वा(cid:7021) तिवक नह(cid:7277) पाया जाता
ह;ै अथवा
(ड.) उ(cid:6989) त िनयमावली के िनयम 5ग और 5घ के साथ प(cid:7407)ठत उ(cid:6989) त अिधिनयम क(cid:7409) धारा 35 क(cid:7409) उपधारा (1) के खडं (ii) के
(cid:7079)ावधान(cid:7298) के अनु(cid:7272)प नह(cid:7277) होगा तथा उनका पालन नह(cid:7277) करेगा।
[अिधसूचना सं. 07/2017/फा. सं. 203/02/2016-आ.क.िन.-II]
अं(cid:7408)कता पांडेय, अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st January, 2017
S.O. 336(E).—It is hereby notified for general information that the organization M/s Center of
Innovative & Applied Bio-processing (‘CIAB’) (PAN:- AABAB8297N) 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 5D of the Income-tax Rules, 1962 (said Rules), from Assessment year 2016-2017
onwards in the category of ‘Scientific Research Association’, subject to the following conditions, namely:-
(i) The sole objective of the approved ‘Scientific Research Association’ ‘CIAB’ shall be to undertake
scientific research;
(ii)(cid:32) The approved organization shall carry out scientific research by itself;
(iii) The approved organization shall maintain separate books of accounts for ‘CIAB’ 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)(cid:32) The approved organization shall maintain a separate statement of donations received and amounts
applied for scientific research for ‘CIAB’ and a copy of such statement duly certified by the auditor shall
accompany the report of audit referred to above.
2.(cid:32) The Central Government shall withdraw the approval if the approved organization:-
(a)(cid:32) fails to maintain separate books of accounts referred to in sub-paragraph (iii) of paragraph 1;
or
(b)(cid:32) fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or
(c)(cid:32) 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)(cid:32) ceases to carry on its research activities or its research activities are not found to be genuine; or
(e)(cid:32) 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 5D of the said Rules.
[Notification No. 07/2017/F. No. 203/02/2016/ITA-II]
ANKITA PANDEY, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.