9911796707
TMI Blog2008 (4) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... "The objective of the Council being scientific and industrial/applied research of national importance, its major activities should be: (i) research and development projects of national priority as evolved by the high level body concerned with overall planning for science and technology in the country; (ii) research and development projects sponsored by industries in the public/private sector and others and in consonance with national priorities; (iii) research and development directed towards continuous improvement of indigenous technology and adaptation and development of imported technology; (iv) research and development of new technologies relevant to the country's social, economic and industrial needs in keeping with the natio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the prescribed authority for the purposes of the clause. The section itself was inserted by the Indian Income-tax (Amendment) Act of 1946, and it is a common ground that the notifications issued approving the assessee for the purposes of the section since the inception were not withdrawn at any point of time. Since several conditions have to be complied with by the organisation which is notified for the purpose of the above clause, the assessee has been submitting its annual accounts, balance-sheet, audit report, etc. to the prescribed authority in order to obtain the benefit of being notified uninterruptedly. The above position continued up to the year 1989. Thus, even after the advent of the Income-tax Act, 1961, the assessee was bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties in obtaining sponsorship for the various research and development projects. There is a series of correspondence in this regard compiled in pages 13 to 32 of the paper book filed by the assessee. Ultimately after protracted correspondence and reminders, the notification was issued on November 30, 2005, granting exemption under section 35(1)(ii) from April 1, 2003 to March 31, 2006. However, the exemption was granted to the assessee not as a scientific research association existing solely for research as was done in the earlier notifications, but the exemption was granted under the category "university, college or other institution partly engaged in research activities". Immediately, on December 26, 2006, the assessee addressed a letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax (Exemption) on the ground that the application for registration should have been filed by July 1, 1973, under section 12A(a) which was not done and the application filed on March 20, 2007, was after a delay of over 34 years. He observed that nothing prevented the assessee from applying the registration before July 1, 1973. In this behalf, he pointed out that section 10(21) which provided exemption to a scientific research association was not applicable to other institutions and the assessee has been categorised as other institution in the notification issued under section 35(1)(ii) and this itself must have made the assessee aware of the obligation to get itself registered under section 12A of the Act. In other words, it was the opin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research association as was done in the past. Even before the notification was issued the assessee, perhaps frustrated by the long delay of one and half years (from March 27, 2003), must have thought that it would be advisable to claim exemption under section 11 and on that basis filed its first return of income for the assessment year 2004-05 on March 31, 2005. Till it did so it had good grounds to think that its income was exempt under section 10(21) as it was considered as a scientific research association in the notifications issued under section 35(1)(ii). When its income was exempt under section 10(21) there was no need to claim exemption under section 11 and consequently there was no need to get itself registered under section 12A. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
