Income Tax Act, 2025
Section 1: Ins. by Act 27 of 1999, s. 18 (w.e.f. 12000).
1. Ins. by Act 27 of 1999, s. 18 (w.e.f. 12000).
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1[(8) Where a deduction for any previous year under sub-section (1) is claimed and allowed in respect
of any expenditure referred to in that sub-section, no deduction shall be allowed under sub-section (1) of
section 32 for the same previous year or any subsequent previous year.]
2[35AC. Expenditure on eligible projects or schemes.— (1) Where an assessee incurs any
expenditure by way of payment of any sum to a public sector company or a local authority or to an
association or institution approved by the National Committee for carrying out any eligible project or
scheme, the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount
of such expenditure incurred during the previous year :
Provided that a company may, for claiming the deduction under this sub-section, incur expenditure
either by way of payment of any sum as aforesaid or directly on the eligible project or scheme.
(2) The deduction under sub-section (1) shall not be allowed unless the assessee furnishes along with
his return of income a certificate—
(a) where the payment is to a public sector company or a local authority or an association or
institution referred to in sub-section (1), from such public sector company or local authority or, as the
case may be, association or institution;
(b) in any other case, from an accountant, as defined in the Explanation below sub-section (2) of
section 288,
in such form, manner and containing such particulars (including particulars relating to the progress in
the work relating to the eligible project or scheme during the previous year) as may be prescribed.
3[Explanation.—The deduction, to which the assessee is entitled in respect of any sum paid to a
public sector company or a local authority or to an association or institution for carrying out the eligible
project or scheme referred to in this section applies, shall not be denied merely on the ground that
subsequent to the payment of such sum by the assessee,—
(a) the approval granted to such association or institution has been withdrawn; or
(b) the notification notifying the eligible project or scheme carried out by the public sector
company or local authority or association or institution has been withdrawn.]
(3) Where a deduction under this section is claimed and allowed for any assessment year in respect of
any expenditure referred to in sub-section (1), deduction shall not be allowed in respect of such
expenditure under any other provision of this Act for the same or any other assessment year.
4[(4) Where an association or institution is approved by the National Committee under
sub-section (1), and subsequently—
(i) that Committee is satisfied that the project or the scheme is not being carried on in accordance
with all or any of the conditions subject to which approval was granted; or
(ii) such association or institution, to which approval has been granted, has not furnished to the
National Committee, after the end of each financial year, a report in such form and setting forth such
particulars and within such time as may be prescribed
the National Committee may, at any time, after giving a reasonable opportunity of showing cause against
the proposed withdrawal to the concerned association or institution, withdraw the approval:
Provided that a copy of the order withdrawing the approval shall be forwarded by the National
Committee to the Assessing Officer having jurisdiction over the concerned association or institution.
Where a deduction for any previous year under sub-section
is claimed and allowed in respect
of any expenditure referred to in that sub-section, no deduction shall be allowed under sub-section
of
section 32 for the same previous year or any subsequent previous year.]
2[35AC. Expenditure on eligible projects or schemes.—
Where an assessee incurs any
expenditure by way of payment of any sum to a public sector company or a local authority or to an
association or institution approved by the National Committee for carrying out any eligible project or
scheme, the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount
of such expenditure incurred during the previous year :
Provided that a company may, for claiming the deduction under this sub-section, incur expenditure
either by way of payment of any sum as aforesaid or directly on the eligible project or scheme.
The deduction under sub-section
shall not be allowed unless the assessee furnishes along with
his return of income a certificate—
where the payment is to a public sector company or a local authority or an association or
institution referred to in sub-section
in any other case, from an accountant, as defined in the Explanation below sub-section
of
section 288,
in such form, manner and containing such particulars (including particulars relating to the progress in
the work relating to the eligible project or scheme during the previous year) as may be prescribed.
3[Explanation.—The deduction, to which the assessee is entitled in respect of any sum paid to a
public sector company or a local authority or to an association or institution for carrying out the eligible
project or scheme referred to in this section applies, shall not be denied merely on the ground that
subsequent to the payment of such sum by the assessee,—
the approval granted to such association or institution has been withdrawn; or
the notification notifying the eligible project or scheme carried out by the public sector
company or local authority or association or institution has been withdrawn.]
Where a deduction under this section is claimed and allowed for any assessment year in respect of
any expenditure referred to in sub-section
Where an association or institution is approved by the National Committee under
sub-section
that Committee is satisfied that the project or the scheme is not being carried on in accordance
with all or any of the conditions subject to which approval was granted; or
such association or institution, to which approval has been granted, has not furnished to the
National Committee, after the end of each financial year, a report in such form and setting forth such
particulars and within such time as may be prescribed
the National Committee may, at any time, after giving a reasonable opportunity of showing cause against
the proposed withdrawal to the concerned association or institution, withdraw the approval:
Provided that a copy of the order withdrawing the approval shall be forwarded by the National
Committee to the Assessing Officer having jurisdiction over the concerned association or institution.