U/s. 35AC, IT ACT, 1961 - Eligible Projects or Schemes, Expenditure On - Karuna Setu Trust, Vadnagar, Gujarat - S.O.1525 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 42/2016 New Delhi, the 26th April, 2016 S.O.1525 (E).- Whereas by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O.96(E) dated the 11th February, 1999 , 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, Running of hospital, purchase of equipments and welfare activities at Vadnagar, Mehsana District, Gujarat by Karuna Setu Trust, Vadnagar- 384355, Gujarat, as an eligible project or scheme for a period of three years beginning with assessment year 1999-2000, which was extended further vide notification number S.O.29(E) dated the 10th January, 2001 for a period of three years beginning with assessment year 2002-2003, which was extended further vide notification number S.O.381(E) dated the 19th March, 2004 for a period of three years beginning with financial year 2004-2005; which was extended further vide notification number S.O. 1298(E) dated 4th June, 2008 for a period of three financial year 2007-08; which was further extended vide S.O. No. 1146 (E) dated 17.05.2010 for a period of three years ending with financial year 2012-13 and which was further extended vide S.O. No. 3851(E) dated 27.12.2013 for a period of three years ending with financial year 2015-16; And whereas by notification number S.O.1120(E) dated the 24th October, 2002 the estimated cost was enhanced from ₹ 67.48 lakh to ₹ 142.03 lakh including a corpus fund of ₹ 50.00 lakh; vide notification number S.O.381(E) dated the 19th March 2004 the estimated cost was further enhanced from ₹ 142.00 lakh to ₹ 184.50 lakh including a corpus fund of ₹ 50.00 lakh; vide notification number S.O. 1298(E) dated 4th June, 2008 the estimated cost was further enhanced from ₹ 184.50 lakh including corpus fund of ₹ 50 lakh to ₹ 282.60 lakh including corpus fund of ₹ 50 lakh; and vide notification number S.O. No. 1146 (E) dated 17.05.2010, the estimated cost was further enhanced from ₹ 282.60 lakh including corpus fund of ₹ 50 lakh to 373.60 lakh including corpus fund of ₹ 50 lakh and vide notification number S.O. No. 3851 (E) dated 27.12.2013 , the estimated cost was further enhanced from ₹ 373.60 lakh including corpus fund of ₹ 50 lakh to ₹ 679.20 lakh including a corpus fund of ₹ 50 lakh; And whereas the said project or scheme is likely to extend beyond eighteen years; 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. 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 Running of hospital, purchase of equipments and welfare activities at Vadnagar, Mehsana District, Gujarat , which is being carried out by Karuna Setu Trust, Vadnagar-384355, Gujarat without any change in the approved cost of ₹ 679.20 lakh including a corpus fund of ₹ 50 lakh, as an eligible project or scheme for a further period of three years beginning with financial years2016-17 i.e. 2016-17, 2017-18 and 2018-19; (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)