Notified agricultural extension project u/s 35CCC of Income Tax Act, 1961 – M/s DCM Shriram Consolidated Ltd.,New Delhi - Sugar Manufacturing & Co-Generation of Power. - 52/2015 - Income Tax

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Notification No. 52/2015 New Delhi, Dated 26/06/2015 FORM NO. 3CP 1. Name, address and PAN of the applicant M/s DCM Shriram Consoliated Limited, New Delhi PAN:- AAACD0097R 2. Title of the agricultural extension project Sugar manufacturing Co-generation of Power 3. Purpose of the agricultural extension project To improve sugarcane productivity by educating farmers of best practices and adopting new / advanced technologies in area of sugar units at Ajbapur, Rupapur, Hariawan Loni in the state of UP 4. Reference No. and date of the application F. No. 203/20/2015-ITA.II received on 14.05.2015 5. Date of commencement of the agricultural extension project Already commenced. However, approval shall be effective from the date of issue of formal Notification u/s 35CCC of the Income-tax Act, 1961 (Act) 6. Duration of the agricultural extension project in months Ongoing project 7. Assessment year(s) for which the agricultural extension project is being notified (not exceeding three years) From date of formal issue of Notification till 31.03.2016 8. Total expenses likely to be incurred for the agricultural extension project (other than cost of land or building) For F.Yr's 2013-14 2014-15 and 2015-16 applicant has claimed expenses of ₹ 2,99,00,000/-, ₹ 4,62,00,000/- and ₹ 5,57,00,000/-respectively. However, as far as F.Yr.'s 2013-14 and 2014-15 are concerned, claim u/s 35CCC is not allowable as weighted deduction can be allowed only from date of formal issue of notification. While for F.Yr. 2015-16, likely expenditure would be less than ₹ 5,57,00,000/ 9. Amount, if any, to be charged from each beneficiary of agricultural extension project NIL 10. Conditions subject to which agricultural extension project titled 'Project Sugar Manufacturing Cogeneration of Power' is being notified are as under: i. The approved entity undertaking agricultural extension project shall maintain separate books of account of the agricultural extension project notified under sub-section (1) of section 35CCC , and get such books of account audited by an accountant as defined in the Explanation below sub-section (2) of section 288 . ii. The audit report referred to in sub-rule (1) shall include the comments of the auditor on the true and fair view of the books of account maintained for agricultural extension project, the genuineness of the activities of the agricultural extension project and fulfillment of the conditions specified in the relevant provisions of the Act or the rules or the conditions mentioned in the notification issued under sub-rule (6) or sub-rule (9) of rule 6AAD. iii. The approved entity shall not accept any amount from the beneficiaries under the eligible agricultural extension project for training, education, guidance or for any material so distributed for the said purposes. iv. The approved entity shall not get any direct or indirect benefit from the notified agricultural extension project except the deduction of the eligible expenditure in accordance with the provisions of section 35CCC of the Act , rule 6AAD of I.T. Rules, 1962 and this Notification. The approved entity shall also not name any of their agricultural extension project/activity/scheme on the brand name of any of their products. v. The applicant shall furnish data sheet of farmers who have benefitted from the project to the Ministry of Agriculture. Further, the applicant shall also share the data pertaining to Soil Health and also provide information regarding availability of additional capacity of Soil Testing Laboratory available with Ministry of Agriculture. vi. All expenses (not being expenditure in the nature of cost of any land or building), as reduced by the amount received from beneficiary, if any, incurred wholly and exclusively for undertaking an eligible agricultural extension project shall be eligible for deduction under section 35CCC : Provided that any expenditure incurred on the agricultural extension project which is reimbursed or reimbursable to the assessee by any person, whether directly or indirectly, shall not be eligible for deduction under section 35CCC . vii. Where a deduction under this section 35CC of the Act is claimed and allowed for any assessment year, deduction shall not be allowed in respect of such expenditure under any other provisions of the Act for the same or any other assessment year. viii. The approved entity shall, on or before the due date of furnishing the return of income under sub-section (1) of section 139 , furnish the following to the jurisdictional PCIT/CIT/PDIT/DIT, as the case may be, namely:- a) the audited statement of accounts of the agricultural extension projects for the previous year along with the audit report and amount of deduction claimed under sub-section (1) of section 35CCC ; b) a note on the agricultural extension project undertaken by it during the previous year and the programme of agricultural extension project to be undertaken during the current year and the financial allocation for such programme; and c) a certificate from the Ministry of Agriculture, Government of India, regarding the genuineness of the agricultural extension project undertaken by the assessee during the previous year. ix. Under the project only product neutral training will be given except a short session on company's profile and products. Further, the farmers benefitted under the project will have the privilege of supplying sugarcane to any sugar factory. 11. The Central Board of Direct Taxes shall withdraw the approval if the approved entity:- a) has ceased its activities; or b) its activities are not genuine; or c) its activities are not being carried out in accordance with all or any of the relevant provisions of the Act or Rules; or d) its activities are not being carried out in accordance with all or any of the conditions subject to which the notification is being issued. (F. No. 203/20/2015-ITA.II) (Rohit Gupta) Deputy Secretary to the Govt. of India