757/CBDT. - Income Tax - 757/CBDT

Instruction No: 757/CBDT Date of Issue: 10/9/1974 Section(s) Referred: 80J Statute: Income - Tax Act, 1961 In instance has come to the notice of the Board wherein a total which otherwise have qualified for grant of deduction u/s 80J, had to lose the same for bilure to get the approval of the Central Government u/s 80J(6)(d). It was found that in this case, even tough the hotel had been graded by the Ministry of Tourism Civil aviation on the basis of application made by it or such purposes, such application could not be considered as an application for purposes of section 80J(6)(d). 2. Avoid recurrence of such situations in future, the requirements of section 80J(6) will have to be clearly understood. These are: (a) A time limit is prescribed in the Act to filing of the application for grant a approval u/s 80J(6). It will be reasonable and correct to say that the applications should be made before the first assessment year, in respect of which to relief is claimed, commences; (b) One an approval is granted it will hold god for the period of five years unless it a withdrawn by another order before the expiry of the period of 5 years; (c) Approval will not be granted retrospectively. 3. For purposes of this section, approval by the Central Government will be given by the Ministry of Tourism Civil aviation. A copy of the earlier instructions and press etc clarifying the legal position are enclosed. The Income-tax Officers working in your charge may be apprised of the extant legal position as set out above.