Income-tax (Fourth
Amendment) Rules, 2013 - Insertion of Rules 6AAD & 6AAE and Form Nos. 3C-O
& 3CP
Notification
No. 38/2013, [F.NO.142/30/2012-SO(TPL)]/SO 1393(E), dated 30.05.2013
In exercise of
the powers conferred by section 295 read with sub-section (1) of section 35CCC
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 (Fourth Amendment) Rules, 2013.
(2) They shall come into force on the date
of their publication in the Official Gazette.
2. In the
Income-tax Rules, 1962, (hereinafter referred to as the "said
rules"), after rule 6AAC, the following rules shall be inserted, namely:-
"6AAD.
Guidelines for approval of agricultural extension project under section 35CCC.
(1) The
agricultural extension project shall be considered for notification if it
fulfils all of the following conditions namely:-
(i) the project shall be
undertaken by an assessee for training, education and guidance of farmers;
(ii) the project shall have prior
approval of the Ministry of Agriculture, Government of India; and
(iii) the expenditure (not being
expenditure in the nature of cost of any land or building) exceeding an amount
of twenty-five lakh rupees is expected to be incurred for the project.
(2) An assessee,
before undertaking any agricultural extension project, shall make an
application for notification of such project under sub-section (1) of section
35CCC, in duplicate, in Form No. 3C-O, to the Commissioner of Income-tax or the
Director of Income-tax, as the case may be, having jurisdiction over the
assessee.
(3) The assessee
shall also send a copy of the application in Form No.3C-O to the Member (IT),
Central Board of Direct Taxes (hereinafter referred to as the CBDT) accompanied
by the acknowledgement receipt, as evidence of having furnished the application
form in duplicate, in the office of the Commissioner of Income-tax or the
Director of Income-tax, as the case may be, having jurisdiction over the case.
(4) The
application shall be accompanied by the following, namely:--
(a) a detailed note on the
agricultural extension project to be undertaken by the assessee;
(b) details of the expenditure
expected to be incurred on the project and expected date of completion of the
project; and
(c) a letter approving the
project and specifying the amount of expenditure expected to be incurred on the
project from the Ministry of Agriculture, Government of India.
(5) If any
defect is noticed in the application referred to in sub-rule (2) or if any
relevant document is not attached thereto, the Commissioner of Income-tax or
the Director of Income-tax, as the case may be, shall, before the expiry of one
month from the date of receipt of the application in his office, intimate the
defect to the applicant for its rectification.
(6) The
applicant shall remove the defect within a period of fifteen days from the date
of such intimation or within such further period which, on an application made
in this behalf, as may be extended by the Commissioner of Income-tax or the
Director of Income-tax, as the case may be, so however, that the total period
for removal of defect does not exceed thirty days, and if the applicant fails
to remove the defect within such period so allowed, the Commissioner of
Income-tax or the Director of Income-tax, as the case may be, shall send his
recommendation for treating the application as invalid to the CBDT.
(7) On receipt
of recommendation of the Commissioner of Income-tax or the Director of
Income-tax, as the case may be, under sub-rule (6), the CBDT, if satisfied, may
pass an order treating the application as invalid.
(8) If the
application form is complete in all respects, the Commissioner of Income-tax or
the Director of Income-tax, as the case may be, may make such inquiry or call
for such documents from the assessee as he may consider necessary for
satisfying himself regarding the genuineness of the current and proposed
activities of the assessee, and send his recommendation to the CBDT for grant
of approval or rejection of the application before the expiry of the period of
two months to be reckoned from the end of the month in which the application form
complete in all respects was received in his office.
(9) The CBDT
may, before notifying an agricultural extension project under section 35CCC,
call for such documents from the assessee, as it considers necessary, and may
also get any inquiry made for verification of the genuineness of the activities
of the assessee.
(10) The CBDT
may, within a period of three months from the end of the month in which it
receives the report referred to in sub-rule (8) from the Commissioner of
Income-tax or the Director of Income-tax, as the case may be, under sub-section
(1) of section 35CCC, issue a notification in Form No. 3CP to be published in
the Official Gazette specifying the agricultural extension project subject to
conditions mentioned in rule 6AAE or such other conditions, as it may deem fit,
to be effective for such period not exceeding three assessment years or pass an
order rejecting the application.
(11) If the CBDT
is satisfied with the activities of the agricultural extension project during
the period of notification, it may notify the said project for a further
period.
(12) A copy of
the notification issued under sub-rule (10) or sub-rule (11) shall be sent to
the applicant, Ministry of Agriculture, Government of India, the Commissioner
of Income-tax or the Director of Income-tax, as the case may be, the Department
of Agriculture of the concerned State, and the Agricultural Technology
Management Agency (ATMA) of the concerned District(s).
(13) The CBDT
may rescind the notification issued under sub-rule (10) or sub-rule (11) at any
time, if it is satisfied that the assessee has ceased its activities or its
activities are not genuine or are not being carried out in accordance with all
or any of the relevant provisions of the Act or this rule or rule 6AAE or are
not being carried out in accordance with all or any of the conditions subject
to which the notification was issued.
(14) An order
treating the application as invalid or rejecting or rescinding the notification
shall not be passed unless the assessee has been given an opportunity of being
heard in the matter.
(15) A copy of
any order invalidating or rejecting the application or rescinding the
notification shall be sent to the applicant, Ministry of Agriculture,
Government of India, the Commissioner of Income-tax or the Director of
Income-tax, as the case may be, the Department of Agriculture of the concerned
State, and the Agricultural Technology Management Agency (ATMA) of the
concerned District(s).
6AAE. Conditions
subject to which an agricultural extension project is to be notified under section
35CCC.
(1) The assessee
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.
(2) 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 (10) or sub-rule (11) of rule 6AAD.
(3) The assessee
shall not accept an amount exceeding the amount as approved in the notification
from the beneficiary under the eligible agricultural extension project for
training, education, guidance or any material distributed for the purposes of
such training, education or guidance.
(4) The assessee
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 35 CCC of the Act, rule 6AAD and this rule.
(5) 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.
(6) The assessee
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 Commissioner of
Income-tax or the Director of Income-tax, 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.
(7) If the
Commissioner of Income-tax or the Director of Income-tax, as the case may be,
is satisfied that the, ---
(a) assessee has not maintained
separate books of account for the agricultural extension project or has not got
such books of account audited by an accountant in accordance with sub-rule (1);
(b) assessee has not furnished
the documents referred to in sub-rule (6);
(c) assessee has ceased to carry
out activities of agricultural extension project;
(d) activities of agricultural
extension project of the assessee are not genuine; or
(e) activities of the
agricultural extension project are not being carried out in accordance with the
relevant provisions of the Act or the rules or the conditions subject to which
the notification was issued,
he may, after
making appropriate inquires, furnish a report on the circumstances referred to
in clause (a) to (e) to the CBDT for appropriate action as per the provisions
of sub-rule (13) of rule 6AAD.".
3.
In Appendix-II of the said rules, after Form No. 3CN, the following forms shall
be inserted, namely:-
.
.
.
.
.
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