Approval of agreements u/s80-O. - Income Tax - 1861/1990

INSTRUCTION NO. 1861/1990 Dated: October 4, 1990 Prior to 1.4.1989, for the purpose of availing tax concession under section 80-O of the Income-tax Act, 1961, agreements entered into by Indian companies were required to be approved by the Central Board of Direct Taxes. 2. The powers of the Board to approve the agreements for the purpose of section 80-O of the Income-tax Act, 1961, have been delegated to the Chief Commissioners/Directors General of Income-tax with effect from 1.4.1989. Applications under this section, pending with the Board as on 1.4.1989 also stand transferred to the concerned Chief Commissioner/Director General of Income-tax for disposal. 3. In respect of some cases rejected prior to 1.4.1989 by the Board, assessees have filed review petitions. The question as to who is the authority to consider such review petitions filed after 31.3.1989 has been examined by the Board in consultation with the Ministry of Law. The Board have been advised that a review is possible only on the basis of fresh facts, and the same can be considered by the authority in whom the power now vests. In view of this, the Chief Commissioner/Director General of Income-tax has the power to dispose of such review petitions. 4. A copy of the referral note dated 22.3.1990 and a copy of the Ministry of Law's opinion dated 16.5.1990 are enclosed.