Income-tax (Fourteenth Amendment) Rules 2002 - 169/2002 - Income Tax

Income-tax (Fourteenth Amendment) Rules 2002 NOTIFICATION. NO. 169 Dated 10th July,2002 In exercise of the powers conferred by section 295 read with clause (iia) of sub-section (1) of section 32 of the Income tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Fourteenth Amendment) Rules 2002. (1) They shall come into force from the Ist day of April, 2003. 2. In the Income-tax Rules, 1962.- (i) in Part II,- (a) after rule 5, the following rule shall be inserted, namely:- "5A. Form of report by an accountant for claiming deduction under section 32(1)(iia). The report from an accountant which is required to be furnished by the assessee under the third proviso to clause (iia) of sub-section (I) of section 32 shall be in Form No. 3AA."; (b) the existing rule 5A shall be renumbered as rule 5AA; (c) in rule 5AB, for the words, figure and letters "Form N0.3AA", the words, figure and letters "Form No. 3AAA" shall be substituted; (ii) in Appendix II,- (a) after Form No. 3A, the following Form shall be inserted, namely:- 'FORM N0.3AA [See rule 5A] Report under section 32(I)(iia) of the Income-tax Act, 1961 1. I/we have examined the accounts and records of ........................................................................... (name and address of the assessee with permanent account number) relating to the business of manufacture or production of .................. during the year ended on 31st day of March ...................................... 2. I/we have obtained all the information and explanations which, to the best of my/our knowledge and belief, were necessary for the purpose of ascertaining the amount of expenditure incurred by the assessee for acquiring and installing new plant and machinery in the new industrial undertaking/existing industrial undertaking. 3. (a) I/we certify that the deduction to be claimed by assessee under the provisions of clause (A) of the first proviso to clause (iia) of sub-section (I) of section 32 of the Income-tax Act, 1961, in respect of the assessment year ............... is Rs.............. which has been determined on the basis of new plant and machinery acquired and installed after the 31st day of March, 2002 by the assessee in the new industrial undertaking. The said amount has been worked out on the basis of the details given in Annexure A to this Form. (a) I/we certify that the deduction to be claimed by the assessee under the provisions of clause (B) of the first proviso to clause (iia) of sub-section (1) of section 32 of the Income-tax Act, 1961, in respect of the assessment year .................. is Rs.............. which has been determined on the basis of new machinery an plant acquired and installed by the assesse during the course of substantial expansion by way of increase in installed capacity of the industrial undertaking .existing before the 1st day of April, 2002. The said amount has been worked out on the basis of the details given in Annexure B to this Form. 4. I/we, therefore, certify that the total deduction to be claimed by the assessee under clause (iia) of sub-section (1) of section 32 in respect of the assessment year .................... is Rs........................... In my/our opinion and to the best of my/our information and according to the information given to me/us, the particulars given above are true and correct. ......................... Signed Accountant Notes: 1. Delete whichever is not applicable. 2. This report is to be given by- (i) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or (ii) any person who, in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1959 (I of 1956), entitled to be appointed to act as an auditor of companies registered in that State. 3. "Actual cost" shall have the same meaning as assigned to it in clause (I) of section 43 read with Explanation 10 of the Income-tax Act, 1961. 4. Substantial expansion by way of increase in installed capacity in the case of an industrial undertaking existing before the 1st day of April, 2002 should not be less than twenty-five percent. "Installed capacity" means the capacity of production as existing on the 31st day of March, 2002. 5. Where any of the matter stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefore. ANNEXURE A |See paragraph 3 (a) of Form No. 3AA] Details relating to the claim by the assessee in case of new industrial undertaking under clause (A) of the first proviso to section 32(l)(iia) of the Income-tax Act, 1961 1.Name of the assesses 2.Assessment year 3.Business relating to manufacture or production of 4.Date of commencement of production 5.Remarks Sl. No. Name and address of the person whom from plant/machinery was acquired Details of plant or machinery Date on which purchased Date of installation Actual cost of the asset 1 2 3 4 5 6 ANNEXURE B [See paragraph 3 (b) of Form No. 3AA] Details relating to the claim by the assessee in cases of substantial expansion by way of increase in installed capacity in case of an industrial existing before 1st day of April, 2003 Part A 1.Name of the assessee 2.Assessment year 3.Business relating to manufacture or production of 4.Total installed capacity as on 31st day of March, 2002 5.Year in which substantial expansion by way of increase in installed capacity achieved 6.Remarks Part B Details of new plant and machinery acquired and installed in an undertaking existing before the 1st day of April, 2002 Sl. No. Name and address of the person whom from plant/machinery was acquired Details of plant or machinery Date on which purchased Date of installation Actual cost of the asset 1 2 3 4 5 6 (b) the existing Form No. 3AA shall be renumbered as Form No. 3AAA. Sd/- (Deepika Mittal) Under Secretary to the Government of India Note.- The principal rules were published vide Notification No-S.0.969(E). dated the 26th March. 1962 and last amended by Income-tax (Thirteenth Amendment) Rules, 2002 vide Notification S.0.No. 659 (E) dated the 24.6.2002. F.No.l42/24/2002-TPL