Procedure for approval of agricultural extension project under section 47(1)(a)

Procedure for approval of agricultural extension project under section 47(1)(a).

37. (1) The agricultural extension project (herein referred as the project) shall be considered for notification, if it fulfils the following conditions:—

(a) the project shall be undertaken by an assessee for training, education and guidance of farmers;

(b) the project shall have prior approval of the Ministry of Agriculture and Farmers Welfare, Government of India; and

(c) an expenditure (not being expenditure in the nature of cost of any land or building) exceeding the amount of Rs. 25,00,000 is expected to be incurred for the project.

(2) Before undertaking any project, an assessee shall make an application in Form No. 20 to the Member (IT), CBDT for notification of such project under section 47(1)(a).

(3) The application referred to in sub-rule (2) shall also be accompanied by—

(a) a letter approving the project and specifying the amount of expenditure expected to be incurred on the project, from the Ministry of Agriculture and Farmers Welfare, Government of India;

(b) a detailed note on the agricultural extension project to be undertaken by the assessee; and

(c) details of the expenditure expected to be incurred on the project and expected date of completion of the project.

(4) Where any defect is noticed in the application referred to in sub-rule (2) or a relevant document is not attached thereto, the Board shall, before the expiry of one month from the end of the month in which the application is received in its office, intimate the defect to the applicant for its rectification.

(5) The applicant shall remove the defect within a period of one month from the end of the month in which intimation letter is served on him.

(6) Where the applicant fails to remove the deficiency within the period mentioned in sub-rule (5), the Board shall, within one month from the time period specified in the said sub-rule, pass an order treating the application as invalid.

(7) If the application is complete in all respects, the Board shall, within two months from the end of the quarter in which it receives such application, issue a notification under section 47(1)(a) in Form No. 21 specifying the project, subject to the conditions mentioned in rule 38 or such other conditions, as it may deem fit, to be effective for such period not exceeding three tax years.

(8) The assessee, may, at least three months before the expiry of the effective period of the notification issued under sub-rule (7), make an application to the Board for notification of such project for a further period.

(9) The Board shall, after receiving the application under sub-rule (8), call for a report from the Commissioner of Income-tax, having jurisdiction over the case regarding the activities of the project during the period of notification and fulfilment of conditions specified in rule 38 including any other conditions, if any, subject to which the project was notified under sub-rule (7).

(10) On being satisfied with the report received under sub-rule (9) on the project, the Board may, within two months from the end of the quarter in which it receives application referred to in sub-rule (8), notify the said project for a further period not exceeding three tax years.

(11) The Board may, on being satisfied that––

(a) the assessee has ceased its activities, or that its activities are not genuine; or

(b) its activities are not being carried out in accordance with all or any of the relevant provisions of this rule or rule 38; or

(c) its activities are not being carried out in accordance with all or any of the conditions subject to which the notification was issued, pass an order for revocation of the notification issued under sub-rule (7) or sub-rule (10) after providing a reasonable opportunity of being heard.

(12) A copy of notification, approval, rejection, or cancellation shall be communicated to—

(a) the applicant;

(b) the Ministry of Agriculture and Farmers Welfare, Government of India;

(c) the Commissioner of Income-tax having jurisdiction over the applicant;

(d) the Department of Agriculture of the concerned State; and

(e) the Agricultural Technology Management Agency of the concerned district.