Notification under section 35D of Income tax Act 1961

EXTRAORDINARY PART II —Section 3 —Sub-section ( i) PUBLISHED BY AUTHORITY No. 452] NEW DELHI, TUES DAY, AUGUST 1, 2023/ SHRAVANA 10, 1945 CG-DL-E-01082023-247765 *मैंने/हमने मैसिड ..................................................................... क े तारीख .... ................. को यथा स्ट्थान : ......................... तारीख : ....................... हस्ट्ताक्षठरत : ............................. नाम : ......................... पता : ......................... ......................... ......................... रुपए ......................... रुपए योग ......................... रुपए योग ......................... रुपए स्ट्थान : ......................... तारीख : ....................... हस्ट्ताक्षठरत : .......................... ... नाम : ......................... पता : ......................... ……………………………… ……… ……… 1. 2. 3. 4. 5. …….. स्ट्थान : ......................... तारीख : ....................... हस्ट्ताक्षठरत : ............................. नाम : ......................... पता : ......................... स्ट्थान : ......................... तारीख : ....................... MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 1 st August, 2023 INCOME -TAX G.S.R. 579(E).––In exercise of the powers conferred by proviso to clause (a) of sub -section (2) and sub-section (4) of section 35D read with section 295 of the Income -tax Act 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules f urther to amend the Income -tax Rules, 1962, namely: –– 1. Short title and commencement. ––(1) These rules may be called the Income -tax (Fourteenth Amendment) Rules, 2023. (2) They shall come into force with effect from the 1st day of April, 2024. 2. In the Income -tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 6ABBA, the following rule shall be inserted, namely: –– “6ABBB. Form of statement to be furnished regarding preliminary expenses incurred under section 35D. – (1) The statement containing particulars of expenditure required to be furnished under proviso to clause (a) of sub - section (2) of section 35D by the assessee shall be in Form No. 3AF for each previous year. (2) Form No. 3AF shall be furnished one month prio r to the due date for furnishing the return of income as specified under sub -section (1) of section 139. (3) Form No. 3AF shall be furnished to the Principal Director General of Income -tax (Systems) or the Director General of Income -tax (Systems), as the c ase may be, or any person authorised by the Principal Director General of Income -tax (Systems) or Director General of Income -tax (Systems). (4) Form No. 3AF, shall be furnished electronically, — (i) under digital signature, if the return of income is requ ired to be furnished under digital signature; (ii) through electronic verification code in a case not covered under clause ( i). (5) The Principal Director General of Income -tax (Systems) or Director General of Income -tax (Systems), as the case may be, shall specify the procedures for furnishing Form No. 3AF and shall also be responsible for formulating and evolving appropriate security, archival and retrieval policies in relation to the form so furnished. (6) The Principal Director General of Income -tax (Systems) or Director General of Income -tax (Systems), as the case may be, or any person authorised by the Principal Director General of Income -tax (Systems) or Director General of Income -tax (Systems) shall forward Form No. 3AF to the Assessing Officer. ”. 3. In the principal rules, in Appendix II, for Form No. 3AE, the following Forms shall be substituted, namely: – “FORM NO. 3AE [See rule 6AB] (e-Form) Audit Report under section * 35D(4)/35E(6) of the Income -tax Act, 1961 * I/We have examined the Balanc e Sheet(s) of M/s __________________________ as at ___________________________________ and the Profit and Loss Account(s) for the year(s) ended on ____________________* that/those date(s) which are in agreement with the books of account maintained at th e 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, pro per books of account have been kept by the head office and the branches of the above named assessee visited by * me/us so far as appears from * my/our examination of the books, and proper returns adequate for the purposes of audit have been received from b ranches not visited by * me/us, subject to the comments given below : - _______________________________________________________________________________________________ _____________________________________________________________________________________ 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(s) of the state of the abovenamed assessee's affairs as at _____________ _______; and (ii) in the case of the Profit and Loss Account(s), of the profit or loss of his accounting year(s) ending on ____________________. The statement of particulars required for the purposes of the deduction under section * 35D/35E is annexed and in *my/our opinion and to the best of * my/our information and according to explanations given to * me/us, these are true and correct. Place………………… Signed: ……………………………………………. Date…………………. Accountant† Name: ……………………………………………… Address: ………………… ……………………….. Membership No: ……………………………… Notes : 1. *Delete whichever is not applicable. 2. †This report is to be given by an accountant as defined in the Explanation below sub -section (2) of section 288 of the Income -tax Act,1961. 3. Where any of the matters stated in this Report is answered in the negative or with a qualification, the Report shall state the reasons for the same. ANNEXURE TO FORM NO. 3AE SECTION A STATEMENT OF PARTICULARS REQUIRED FOR THE PURPOSES OF DEDUCTION UNDER SECTION 35D 1. Date of commencement of business …………………… 2. Where the deduction is claimed with reference to the expenditure incurred in connection with the extension of the industrial undertaking or the setting up of a new industrial unit, the date on which the extension wa s completed or new industrial unit commenced production or operation ……………………. *3. Qualifying amount of expenditure : † (a) Expenditure in connection with - (i) preparation of feasibility report (ii) preparation of project report (iii) conducting market survey or any other survey necessary for the business of the assessee (iv) engineering services relating to the business of the assessee Rs…… Rs…… Rs…… Rs…… (b) Legal charges for drafting any agreement between the assessee and any other person for any purpose relating to the setting up or conduct of the business of the assessee Rs…….. TOTAL Rs…….. Wheth er Form No. 3AF has been filed as per the provisions of rule 6ABBB? Yes/No ‡4. Cost of the project, i.e., actual cost of: (i) land and buildings (including expenditure on development) (ii) leaseholds (iii) plant and machinery (iv) furniture and fittings (v) railway sidings Rs……… Rs……… Rs……… Rs……… Rs……… TOTAL Rs……… 5. Deduction claimed under section 35D Rs……… Place………….. Date…………… Signed : ……………………………... Accountant Name: ……………………………….. Address: …………………………….. Membership No: …………………… . SECTION B STATEMENT OF PARTICULARS REQUIRED FOR THE PURPOSES OF DEDUCTION UNDER SECTION 35E 1. Name(s) of mineral(s) or group(s) of associated minerals in respect of which operation relating to prospecting or development were undertaken ……………………………… … 2. Year of commercial production ………………………………… 3. Qualifying amount of expenditure: Year in which expenditure was incurred Amount of expenditure (Give details) Rs. 1. 2. 3. 4. 5. …….. Place………….. Date…………… Signed : ……………………………... Accountant Name : ……………………………….. Address: …………………………….. Membership No: ……………………. *Where the qualifying expenditure was incurred during more than one year, year -wise details of the expe nditure should be given. †Expenditure prior to 1.4.2023 under this head should be claimed only where the work in connection with the preparation of the feasibility report or project report or conducting market survey or any other survey or engineering services has been carried out by the assessee himself or by a concern which has been approved in this behalf by the Board. Expenditure after 1.4.2023 under this head requires Form No. 3AF also to be furnished. ‡ In a case where the claim relates to prelimi nary expenses incurred before the commencement of business, the actual cost of the specified assets which are shown in the books of the assessee as on the last day of the previous year in which the business was commenced should be given. In a case where th e expenses were incurred in connection with the extension of the industrial undertaking or the setting up of a new industrial unit, the actual cost of the specified assets which are shown in the books of account as on the last day of the previous year in w hich the extension of the industrial undertaking was completed or the new industrial unit commenced production or operation (in so far as such assets have been acquired or developed in connection with the extension of the industrial undertaking or the sett ing up of the new industrial unit) should be given. FORM NO. 3AF [See rule 6ABBB] (E-form) Statement regarding preliminary expenses incurred to be furnished under proviso to clause (a) of sub -section (2) of section 35D of the Income -tax Act, 1961 by the assessee Name of the Assessee Name Status Residential status Permanent Account Number Aadhaar number (if applicable) Tax Deduction and Collection Account Number (if applicable) Address Relevant previous year for which the statement is being filed Expenditure in connection with:* Details of expenditure incurred Nature of activity (See Note 1) Whether carried out by assessee itself (Y/N) Name and address of person (s) carrying out the activity (See Note 2) PAN of the person(s) Whe ther the person (other than assessee itself), has prior experience in carrying out the activity (Y/N) Amount of expenditure (in Rs.) If tax deducted at source, then provide: Paid in Cash Paid other than in cash Total Amount of tax deducted (in Rs.) Section under which tax is deducted a. Preparation of feasibility report … b. Preparation of project report … c. Conducting market survey or any other survey necessary for business of the asse ssee … d. Engineering services relating to the business of the assessee … *Drop down to be provided Verification I ………………., do hereby declare that what is stated above is true to the best of my knowledge and belief. Verified today, the ______________ day of ______________. Place Date Signature of the Authorised Signatory Note: 1. In case there is more than one person carrying out the activity, separate details to be filled. 2. If carried out by the assessee itself, write “SELF”.”. [Notification No. 54 /2023/ F. No. 370142/24/2023 -TPL] JIVITESH ANAND , Under Secy . (Tax Policy and Legislation Division) Note : The principal rules were published in the Gazette of India, Extraordinary, Part -II, Section 3, Sub -section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification number G.S.R. 519 (E), dated 18.7.2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.