U/s. 35AC, IT ACT, 1961 - Eligible Projects or Schemes, Expenditure On - Karuna Trust, Ahmedabad - S.O.1511 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No.28/2016 New Delhi, the 26th April, 2016 S.O.1511 (E). - Whereas by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O.92(E) dated the 2nd February, 1996 , issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961) , the Central Government had notified at serial number 5, Conduct eye operation, polio operation camps, oxygen cylinder seva and ambulance service all over Gujarat by Karuna Trust, 22, Gautam Nagar, Near Naranpura-Railway Crossing, Ahmedabad-13 , as an eligible project or scheme for a period of three years beginning with assessment year 1996-1997, which was extended further vide notification number S.O.57(E) dated the 16th January, 1998 for a period of three years beginning with assessment year 1999-2000; which was extended further vide notification number S.O.539(E) dated the 20th June, 2001 for a period of three years beginning with assessment year 2002-2003; which was extended further vide notification number S.O.143(E) dated the 2nd February, 2005 for a period of three years beginning with financial year 2004-2005; which was extended further vide notification number S.O.1307(E) dated 4th June, 2008 for a period of three years beginning with financial year 2007-08 and which was further extended vide notification number S.O. 3861(E) dated 27.12.2013 for a period of three years ending with financial year 2015-16; And whereas by notification number S.O.539(E) dated the 20th June, 2001 the estimated cost was enhanced from ₹ 94.00 lakh to ₹ 128.00 lakh; vide notification number S.O.1307(E) dated 4th June, 2008 the estimated cost was enhanced further from ₹ 128.00 lakh to 153.00 lakh and whereas by notification number S.O 3861(E) dated 27.12.2013 the estimated cost was enhanced from ₹ 153 lakh to ₹ 200 lakh and whereas by notification number S.O 472(E) dated 11.2.2015 the estimated cost was enhanced from ₹ 200 lakh to ₹ 470 lakh including a corpus fund of ₹ 270 lakh; And whereas the said project or scheme is likely to extend beyond 18 years; And whereas the project cost of ₹ 470 lakh including a corpus fund of ₹ 270 lakh is likely to be amended to ₹ 500 lakh including a corpus fund of ₹ 270 lakh; And, whereas, the National Committee for the Promotion of Social and Economic Welfare, being satisfied that the said project or scheme is being executed properly, made a further recommendation under sub-rule (5) of rule 11M of the Income-tax Rules, 1962 for extending the said project or scheme for a further period of three years and for enhancing the project cost from ₹ 470 lakh including a corpus fund of ₹ 270 lakh to ₹ 500 lakh including a corpus fund of ₹ 270 lakh. However, the exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules 2014 ; Now, therefore, the Central Government, in exercise of the powers conferred by sub- section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), (a) hereby notifies the scheme or project Conduct eye operation, polio operation camps, oxygen cylinder seva and ambulance service all over Gujarat by Karuna Trust, 22, Gautam Nagar, Near Naranpura-Railway Crossing, Ahmedabad-13, for a further period of three years beginning with the financial year 2016-17 i.e. 2016-17, 2017-18 and 2018-19 ; (b) further amends the said notification number S.O. 92(E) dated the 2nd February, 1996, to the following effect, namely:- In the said notification, in the Table against serial number (5), in column (4), relating to maximum amount of cost to be allowed as deduction under section 35 AC , for the letters, figures and words Rs.470 lakh including a corpus fund of ₹ 270 lakh , the letters, figures and words Rs.500 lakh including a corpus fund of ₹ 270 lakh shall be substituted . (b). The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules 2014. [F.No.V. 27015/1/2016-SO (NAT.COM)] MAKKHAN LAL MEENA,Dy. Secy. (National Committee)