Insertion of new section 35AC.
13. After section 35AB of the Income-tax Act, the following section shall be inserted, with effect from the 1st day of April, 1992, namely:—
’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 subsection (2), 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) Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure referred to in sub-section (2), 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.
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.’.
[Finance (No. 2) Act, 1991]