Section 5 - Amendment of section 35. - Taxation Laws (Amendment) Act, 2006

Amendment of section 35. 5. In the Income-tax Act, in section 35, with effect from the 1 day of April, 2006, - (1) in sub-section (i),- (a) in clause (ii), for the proviso, the following proviso shall be substituted, namely:- Provided that such association, university, college or other institution for the purposes of this clause - (A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government, ; (b) in clause (iii), for the proviso, the following proviso shall be substituted, namely:- Provided that such university, college or other institution for the purposes of this clause - (A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and (B) such university, college or other institution is specified as such by notification in the Official Gazette, by the Central Government, ; (c) after clause (iii), the following Explanation shall be inserted, namely:- Explanation.- The deduction to which the assessee is entitled in respect of any sum paid to a scientific research association, university, college or other institution to which clause (ii) or clause (iii) applies, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) has been withdrawn; ; (d) in the second proviso, for the word authority , the word Government shall be substituted; (e) in the third proviso, for the words, brackets and letters notification issued by the Central Government under clause (ii) or clause (iii) shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years , the words, brackets, figures and letters notification issued, by the Central Government under clause (ii) or clause (iii), before the date on which the Taxation Laws (Amendment) Bill, 2006 received the assent of the President, shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years shall be substituted; (f) after the third proviso, the following proviso shall be inserted at the end, namely:- Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the period of twelve months from the end of the month in which such application was received by the Central Government. . (ii) in sub-section (2AA), the Explanation shall be numbered as Explanation 2 thereof and before the Explanation 2 as so numbered, the following Explanation shall be inserted, namely:- Explanation 1. - The deduction, to which the assessee is entitled in respect of any sum paid to a National Laboratory, University, Indian Institute of Technology or a specified person for the approved progamme referred to in this sub-section, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to, - (a) such Laboratory, or specified person has been withdrawn; or (b) the programme, undertaken by the National Laboratory, University, Indian Institute of Technology or specified person, has been withdrawn. .