Income Tax Act, 2025
Section 4: Subs by Act 23 of 2004, s. 10 for sub-section (4) (w.e.f. 12004).
4. Subs by Act 23 of 2004, s. 10 for sub-section (4) (w.e.f. 12004).
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(5) Where any project or scheme has been notified as an eligible project or scheme under clause (b) of
the Explanation, and subsequently—
(i) the National 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 such project or scheme was notified; or
(ii) a report in respect of such eligible project or scheme has not been furnished after the end of
each financial year, in such form and setting forth such particulars and within such time as may be
prescribed,
such notification may be withdrawn in the same manner in which it was issued:
Provided that a reasonable opportunity of showing cause against the proposed withdrawal shall be
given by the National Committee to the concerned association, institution, public sector company or local
authority, as the case may be:
Provided further that a copy of the notification by which the notification of the eligible project or
scheme is withdrawn shall be forwarded to the Assessing Officer having jurisdiction over the concerned
association, institution, public sector company or local authority, as the case may be, carrying on such
eligible project or scheme.]
1[(6) Notwithstanding anything contained in any other provision of this Act, where—
(i) the approval of the National Committee, granted to an association or institution, is withdrawn
under sub-section (4) or the notification in respect of eligible project or scheme is withdrawn in the
case of a public sector company or local authority or an association or institution under
sub-section (5); or
(ii) a company has claimed deduction under the proviso to sub-section (1) in respect of any
expenditure incurred directly on the eligible project or scheme and the approval for such project or
scheme is withdrawn by the National Committee under sub-section (5),
the total amount of the payment received by the public sector company or the local authority or the
association or the institution, as the case may be, in respect of which such company or authority or
association or institution has furnished a certificate referred to in clause (a) of sub-section (2) or the
deduction claimed by a company under the proviso to sub-section (1) shall be deemed to be the income of
such company or authority or association or institution, as the case may be, for the previous year in which
such approval or notification is withdrawn and tax shall be charged on such income at the maximum
marginal rate in force for that year.]
2[(7) No deduction under this section shall be allowed in respect of any assessment year commencing
on or after the 1st day of April, 2018.]
Explanation.—For the purposes of this section,—
(a) “National Committee” means the Committee constituted by the Central Government, from
amongst persons of eminence in public life, in accordance with the rules made under this Act;
(b) “eligible project or scheme” means such project or scheme for promoting the social and
economic welfare of, or the uplift of, the public as the Central Government may, by notification in the
Official Gazette, specify in this behalf on the recommendations of the National Committee.]
3[35AD. Deduction in respect of expenditure on specified business.— (1) An assessee shall be
allowed a deduction in respect of the whole of any expenditure of capital nature incurred, wholly and
exclusively, for the purposes of any specified business carried on by him during the previous year in
which such expenditure is incurred by him:
(w.e.f. 12004).
196
Where any project or scheme has been notified as an eligible project or scheme under clause
of
the Explanation, and subsequently—
the National 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 such project or scheme was notified; or
a report in respect of such eligible project or scheme has not been furnished after the end of
each financial year, in such form and setting forth such particulars and within such time as may be
prescribed,
such notification may be withdrawn in the same manner in which it was issued:
Provided that a reasonable opportunity of showing cause against the proposed withdrawal shall be
given by the National Committee to the concerned association, institution, public sector company or local
authority, as the case may be:
Provided further that a copy of the notification by which the notification of the eligible project or
scheme is withdrawn shall be forwarded to the Assessing Officer having jurisdiction over the concerned
association, institution, public sector company or local authority, as the case may be, carrying on such
eligible project or scheme.]
1[
Notwithstanding anything contained in any other provision of this Act, where—
the approval of the National Committee, granted to an association or institution, is withdrawn
under sub-section
or the notification in respect of eligible project or scheme is withdrawn in the
case of a public sector company or local authority or an association or institution under
sub-section
a company has claimed deduction under the proviso to sub-section
in respect of any
expenditure incurred directly on the eligible project or scheme and the approval for such project or
scheme is withdrawn by the National Committee under sub-section
of sub-section
or the
deduction claimed by a company under the proviso to sub-section
shall be deemed to be the income of
such company or authority or association or institution, as the case may be, for the previous year in which
such approval or notification is withdrawn and tax shall be charged on such income at the maximum
marginal rate in force for that year.]
2[
No deduction under this section shall be allowed in respect of any assessment year commencing
on or after the 1st day of April, 2018.]
Explanation.—For the purposes of this section,—
“National Committee” means the Committee constituted by the Central Government, from
amongst persons of eminence in public life, in accordance with the rules made under this Act;
“eligible project or scheme” means such project or scheme for promoting the social and
economic welfare of, or the uplift of, the public as the Central Government may, by notification in the
Official Gazette, specify in this behalf on the recommendations of the National Committee.]
3[35AD. Deduction in respect of expenditure on specified business.—
An assessee shall be
allowed a deduction in respect of the whole of any expenditure of capital nature incurred, wholly and
exclusively, for the purposes of any specified business carried on by him during the previous year in
which such expenditure is incurred by him: