Income-tax (23rd Amendment) Rules, 2002 - 240/2002 - Income Tax

Income-tax (23rd Amendment) Rules, 2002 NOTIFICATION No. 240, Dated 6th September. 2002 In exercise of powers conferred by section 295, read with sub-section (7) of section 80-IA and sub-section (7) of section 80-1 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 (23rd Amendment) Rules, 2002. (2) 1 [ They shall come into force on the 6th day of September, 2002 ]. 2. In the Income-tax Rules, 1962, (i) for Rule 18BBB, the following shall be substituted:- Form of audit report far claiming deduction under section 80-1 or 8-IA or Section 80-IB. 18BBB (1) The report of the audit of the accounts of an assessee, which is required to be furnished under sub-section (7) of section 80-IA or sub-section (7) of section 80-1, except in the cases of multiplex theatres as defined in sub-section (7A) of section 80-IB or convention centers as defined in sub-section (7B) of section 80-IB, shall be in Form Number 10CCB. (2) A separate report is to be furnished by each undertaking or enterprise of the assessee claiming deduction under section 80-1 or 80-IA or 80-IB and shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (3) In the case of an enterprise carrying on the business of developing or operating and maintaining or developing, operating and maintaining an infra structure facility, the form shall be accompanied by a copy of the agreement of the enterprise with the central government or the state government or the local authority for carrying on the business of developing or operating and maintaining or developing, operating and maintaining the infrastructure facility. (4) In any other case, the form shall be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the central government or the state government or the local authority for carrying on the eligible business. (ii) In Appendix-II, for Form Number 10CCB, the following Form shall be substituted, namely:- FORM NO. 10CCB [See Rule 18BBB] 1. NAME OF THE ASSESSEE: 2. PAN: ______________ 3. STATUS: 4. OWNERSHIP STATUS OF THE UNDERTAKING (a) FULLY OWNED BY. ASSESSEE YES __ NO __ (b) PARTLY OWNED BY ASSESSEE YES __NO___ IF YES, PLEASE SPECIFY THE PERCENTAGE OF OWNERSHIP:___ 5. ADDRESS: 6. NAME OF THE ENTERPRISE OR UNDERTAKING ELIGIBLE FOR DEDUCTION U/S 80-IA AND 80-IB: 7. SECTION AND SUB-SECTION OF THE IT ACT, 1961, UNDER WHICH DEDUCTION BEING CLAIMED: 8. DATE OF COMMENCEMENT OF OPERATION BY THE UNDERTAKING:__________________ 9. INITIAL ASSESSMENT YEAR FROM WHEN DEDUCTION IS BEING CLAIMED: ___________ 10. ADDRESS (WITH DISTRICT STATE) OF THE ENTERPRISE/UNDERTAKING CLAIMING DEDUCTION: _____________________________ 11. EXCISE/SERVICE-TAX REGISTRATION NUMBER AND OFFICE WHERE REGISTERED: 12. SALES TAX REGISTRATION NUMBER AND OFFICE WHERE REGISTERED: 13. LOCAL/STATE AUTHORITIES FROM WHOM APPROVAL IS TAKEN (ATTACH COPY OF APPROVAL): 14. DEVELOPMENT/OPERATION/MAINTENANCE OF AN INFRASTRUCTURE FACILITY (a) WITH RESPECT TO THE INFRASTRUCTURE FACILITY, DOES THE UNIT (PLEASE TICK) ____ DEVELOPS, ___ OPERATES MAINTAINS, ____ DEVELOPS, OPERATES MAINTAINS, THE INFRASTRUCTURE FACILITY. (b) PLEASE SPECIFY THE NATURE OF THE INFRASTRUCTURE FACILITY***: _________________ (Eg.,- TOLL ROAD. BRIDGE. RAIL SYSTEM, PORT. ETC. (EXPLANATION TO SECTION 80-IA(4)(i)]) 15. IS THE UNDERTAKING PROVIDING TELECOM SERVICES: ______YES ______ NO (a) IF YES PLEASE SPECIFY THE NATURE OF TELECOM SERVICE; _______________ (Eg., BASIC TELECOM SERVICE, CELLULAR SERVICE, ETC (SECTION 80-IA(4)(ii)] 16. UNDERTAKING IN THE DEVELOPMENT, OPERATION, MAINTENANCE OF INDUSTRIAL PARK/SEZ (a) WITH RESPECT TO THE INDUSTRIAL PARK/SEZ, DOES THE UNDERTAKING (PLEASE TICK):- ___ DEVELOPS, _____ DEVELOPS OR OPERATES, ______ MAINTAINS AND OPERATES AN INDUSTRIAL PARK/SEZ (b) NAME AND ADDRESS OF THE INDUSTRIAL PARK/SEZ: _________________ (c) HAS THE OPERATION MAINTENANCE OF THE INDUSTRIAL PARK/SEZ RECEIVED ON TRANSFER FROM ITS DEVELOPER: _____yes ______ NO (d) IF YES, FIRST YEAR OF CLAIMING DEDUCTION U/S; 801A BY THE DEVELOPER: __________ (ATTACH COPY OF FORM 10CCB OF DEVELOPER) 17. UNDERTAKING IN GENERATION/TRANSMISSION/DISTRIBUTION OF POWER (a) DOES THE UNDERTAKING:- - GENERATE POWER OR GENERATES AND DISTRIBUTES POWER ____ YEAR IN WHICH THE UNIT HAS STARTED GENERATING POWER - TRANSMITS OR DISTRIBUTES POWER ____ YEAR IN WHICH THE NEW TRANSMISSION AND DISTRIBUTION LINES WERE LAID. 18. ELIGIBLE BUSINESS UNDER SECTION 80-1B (a) HAS THE INDUSTRIAL UNDERTAKING RECEIVED ANY MACHINERY OR PLANT ON TRANSFER WHICH WAS PREVIOUSLY USED FOR ANY PURPOSE __ YES__ NO (b) IF YES, PLEASE SPECIFY VALUE OF MACHINERY RECEIVED ON TRANSFER: ____________ (c) TOTAL VALUE OF MACHINERY OF PLANT USED IN BUSINESS; d)DOES THE INDUSTRIAL UNDERTAKING MANUFACTURE OR PRODUCTES ANY _______ YES ______ NO ARTICLE OR THING SPECIFIED IN THE 11TH SCHEDULE (PLEASE SPECIFY THE ARTICLE OR THING: ________________) (e) IF YES, DOES THE MANUFACTURING PROCESS USE POWER ____ YES ______NO (f) NUMBER OF WORKERS EMPLOYED IN THE MANUFACTURING PROCESS: (g) DOES THE INDUSTRIAL UNDERTAKING OPERATE ANY COLD STORAGE PLANT____YES __ NO (h) PLEASE SPECIFY IF THE COMPANY IS A SMALL SCALE INDUSTRIAL UNDERTAKING _ YES _ NO (i) IF THE INDUSTRY IS LOCATED IN THE NORTH EASTERN REGION, IS THE INDUSTRY A NOTIFIED INDUSTRY AS PER SECOND PROVISO TO SUB-SECTION 80-1B (4)? ___Yes___ No BUSINESS OF SHIP (j)IS THE SHIP OWNED BY AN INDIAN COMPANY AND WHOLLY USED FOR THE BUSINESS CARRIED BY IT ___Yes___ No (k) IP THE SHIP WAS ACQUIRED ON TRANSFER WAS THE SHIP OWNED OR USED IN INDIAN TERRITORIAL WATERS BY A PERSON RESIDENT IN INDIA ___Yes___ No BUSINESS OF HOTEL (L)IS THE HOTEL LOCATED IN (i)HILLY AREA ____ (ii)RURAL AREA _________ (iii)PLACE OF PILGRIMAGE ________ (iv)OTHER NOTIFIED AREA ____________(PLEASE SPECIFY:.........) (v)NONE OF THE ABOVE _______ (PLEASE SPECIFY:.............) (m) IS THE HOTEL APPROVED BY THE PRESCRIBED AUTHORITY UNDER RULE 18BBC OF THE INCOME TAX RULES 1962 ____Yes_____ No SCIENTIFIC RESEARCH AND DEVELOPMENT BUSINESS (n) IS THE BUSINESS APPROVED BY THE PRESCRIBED AUTHORITY UNDER RULE 18DAND SUBJECT TO THE CONDITIONS IN RULE 18DA OF THE INCOME TAX RULES ___Yes___ No (o) IS THE UNDERTAKING IN THE COMMERCIAL PRODUCTION OR REFINING OF MINERAL OIL ___Yes___ NO (p) IF YES, SPECIFY:- _____COMMERCIAL PRODUCTION OF MINERAL OIL ____ REFINING OF MINERAL OIL UNDERTAKING DEVELOPING AND BUILDING HOUSING PROJECTS (q) DATE OF APPROVAL BY LOCAL AUTHORITY: ________ (PLEASE ATTACH COPY OF APPROVAL) (r) DATE OF COMPLETION OF THE HOUSING PROJECT: ____________ (s) SIZE OF PLOT OF LAND OF THE PROJECT; __________ (t) IS THE PROJECT SITUATED IN DELHI OR MUMBAI OR WITHIN 25 KILOMETERS FROM THEIR MUNICIPAL LIMITS _______Yes _____No (u) BUILT-UP AREA OF THE RESIDENTIAL UNIT OF THE PROJECT__________ (v) PLEASE SPECIFY THE METHOD OF ACCOUNTING ADOPTED: ________ (w) IS THE UNDERTAKING IN THE BUSINESS OF SETTING UP AND OPERATING A COLD CHAIN FACILITY FOR AGRICULTURAL PRODUCE ___Yes___ No (x) IS THE UNDERTAKING IN THE INTEGRATED BUSINESS OF HANDLING STORAGE AND TRANSPORTATION OF FOODGRAIN ___Yes____ No 19. TOTAL SALES OF THE UNDERTAKING_____________________ 20. TRANSACTIONS BY THE UNDERTAKING TO A RELATED CONCERN OF THE ASSESSEE OR, ANOTHER UNDERTAKING OF THE ASSESSEE, OR THE CO-OWNER OF THE UNDERTAKING, OR ANOTHER UNDERTAKING OF THE CO-OWNER:- (RELATED CONCERN IS A PERSON WITHIN THE MEANING OF SECTION 40A (2) (b)) NAME OF THE RELATED CONCERN (a)______________ (b)_______________ (c)________________ (d)_________________ TRANSACTION(PLEASE SPECIFY NATURE AND AMOUNT) Rs._____________________________ Rs.__________________________ Rs.__________________________ Rs.__________________________ 21. PROFIT AND GAINS DERIVED BY THE UNDERTAKING/ENTERPRISE FROM THE ELIGIBLE BUSINESS: 22. DEDUCTION UNDER SECTION 80-I/80-IA/80-IB: _______________________ (STRIKE OUT WHICHEVER IS NOT APPLICABLE) DECLARATION *l/We have examined the balance sheet of the above industrial undertaking styled **.............................. and belonging to the assesses m/s................................................................................... (Permanent account no.....................................) as at.......................................and the profit and loss account of the said industrial undertaking for the year ended on that date which are in agreement with the books of account maintained at the head office at........................ and branches at........................................................................... I/We have obtained all the information and explanations which to the best of *my/our knowledge and belief were necessary for the purposes of the audit. In * my/our opinion, proper books of account have been kept by the head office and the branches of the industrial undertaking aforesaid visited by *me/us so far as appears from *my/our examination of books, and proper returns adequate for the purposes of audit have been received from branches not visited by *me/us, subject to the comments given below:- In my opinion the undertaking satisfies the conditions stipulated in sections 80-i/80-ia/80-ib (strike out whichever is not applicable) and the amount of deduction claimed under this section in Item 21 is as per the provisions of the income tax act and meets the required conditions. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the said accounts give a true and fair view - (i) in the case of the balance sheet, of the state of affairs of the above named industrial undertaking as at.........,.............,-................-.....................; and (ii) in the case of the profit and loss account, or the profit or loss of the industrial undertaking for the accounting year ending on........................................ PLACE. DATE... SIGNED accountants NOTES: 1. *Delete whichever is not applicable. 2. **Here give name and address. 3. *** Provide a copy of the agreement with the central government or state government or local authority. 4. Please provide profit loss account and balance sheet of the undertaking/enterprise. 5. Please provide the notification of approval of the industrial park/sez. 6.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, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that state. 7. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefore. Sd/- (Dr. Dheeraj Bhatnagar) Director to the Government of India F.NO.142/27/2002-TPL Foot note: The principal rules were published under Notification No. S.O. 969 dated 26-3-1962 which has been amended from time to time, the last such amendment was made vide notification no. 228/2002 dated 21-8-2002. ********** Notes 1. Substituted vide Notification No. 156 of 2003 dated 18-06-2003 before it was read as They shall be deemed to have come into force on the 1st day of April. 2002