Section 6 - Amendment of section 35AC - Taxation Laws (Amendment) Act, 2006

Amendment of section 35AC. 6. In section 35AC of the Income-tax Act, after sub-section (2), the following Explanation shall be inserted with effect from the 1st day of April, 2006, namely:- Explanation. - The deduction, to which the assessee is entitled in respect of any sum paid to a public sector company or a local authority or to an association or institution for carrying out the eligible project or scheme referred to in this section applies, shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee, - (a) the approval granted to such association or institution has been withdrawn; or (b) the notification notifying eligible project or scheme carried out by the public sector company or local authority or association or institution has been withdrawn.