Notification No. 16/2015 [F.No.203/29/2014/ITA.II]

Section 35CCC of the Income-tax Act, 1961 - Expenditure on Agricultural Extension Project - Notified Eligible Agricultural Extension Project - Godrej Agrovet Limited - Agricultural Inputs Extension Project

What this is

Notification No. 16/2015 [F.No.203/29/2014/ITA.II] was published on 16 February 2015. Its subject is Section 35CCC of the Income-tax Act, 1961 - Expenditure on Agricultural Extension Project - Notified Eligible Agricultural Extension Project - Godrej Agrovet Limited - Agricultural Inputs Extension Project.

What it does

The notification, in Form No. 3CP, notifies the "Godrej Agrovet - Agricultural Inputs Extension Project (GA-AIEP)" of Godrej Agrovet Limited, Vikhroli (East), Mumbai (PAN AAACG0617Q), as an eligible agricultural extension project under section 35CCC of the Income-tax Act, 1961. The project is already running, but approval is effective only from the date of issue of this notification, and it is notified from that date till assessment year 2016-17. Likely expenditure for assessment year 2016-17 is put at Rs. 10,82,00,000, and it is recorded that no claim under section 35CCC shall be allowed for financial year 2013-14 and that the amount for financial year 2014-15 will be much less than claimed because approval runs only from the later date. Ten conditions are attached, including separate books of account audited by an accountant as defined in the Explanation below sub-section (2) of section 288, a bar on charging beneficiaries anything, product-neutral training only, and sharing the database of extension workers with the District Agricultural Committee concerned.

Who it reaches

Godrej Agrovet Limited as the approved entity
its auditor certifying the separate books of account of the project
farmers and input dealers taking training under the project, who cannot be charged
the Commissioner of Income-tax or Director to whom the annual filings go
assessing officers testing the deduction under section 35CCC

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.35CCC	s.47
s.288	s.515

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

SECTION 35CCC OF THE INCOME-TAX ACT, 1961 - EXPENDITURE ON AGRICULTURAL EXTENSION PROJECT - NOTIFIED ELIGIBLE AGRICULTURAL EXTENSION PROJECT - GODREJ AGROVET LIMITED - AGRICULTURAL INPUTS EXTENSION PROJECT
NOTIFICATION NO. 16/2015 [F.NO.203/29/2014/ITA.II], DATED 16-2-2015
FORM NO. 3CP

1.
Name, address and PAN of the affidavit
Godrej Agrovet Limited Pirojshanagar, Eastern Express Highway, Vikroli (East), Mumbai-400079 (AAACG0617Q)

2.
Title of the agricultural extension project
Godrej Agrovet- Agricultural Inputs Extension Project (NGA- AIEP')

3.
Purpose of the agricultural extension project
To improve the productivity of Indian farmers by providing innovative products and services that sustainably increase crop and livestock yields. To provide latest solutions to the farmers and educate them on good agricultural practices.

4.
Reference No. and date of the application
F.No. 203/29/2014-ITA.II received on 14.01.2015

5.
Date of commencement of the agricultural extension project
Already commenced. However, approval shall be effective from the date of issue of this formal Notification u/s 35CCC of the IT. Act.

6.
Duration of the agricultural extension project in months
Ongoing project.

7.
Assessment year(s) for which the agricultural extension project is being notified (not exceeding three years)
From date of formal issue of Notification till A.Y. 2016-17.

8.
Total expenses likely to be incurred for the agricultural extension project (other than cost of land or building)
For A.Yr's 2014-2015 and 2015-16 (applicant has claimed expenses of Rs. 10,82,00,000/-for each year. However, as project is being accorded approval from subsequent date in the F.Yr. 2014-2015, the expected expenditure for the relevant period would be much lesser, as far as F.Yr. 2013-2014 is concerned, no claim u/s 35CCC shall be allowed) while for A.Y. 2016-17, likely expenditure is Rs. 10,82,00,000/-.

9.
Amount, if any, to be charged from each beneficiary of agricultural extension project.
NIL

10. Conditions subject to which agricultural extension project titled ('GA-AIEP') is being notified are as under:

i.

The approved entity undertaking agricultural extension project shall maintain separate books of account of the agricultural extension project notified under sub-section (1) of section 35CCC, and get such books' of account audited by an accountant as defined in the Explanation below sub-section (2) of section 288.

ii.

The audit report referred to in sub-rule (1) shall include the comments of the auditor on the true and fair view of the books of account maintained for agricultural extension project, the genuineness of the activities of the agricultural extension project and fulfillment of the conditions specified in the relevant provisions of the Act or the rules or the conditions mentioned in the notification issued under sub-rule (6) or sub-rule (9) of rule 6AAD.

iii.

The approved entity shall not accept any amount from the beneficiary under -the eligible agricultural extension project for training, education, guidance or any material distributed for the purposes of such training, education or guidance.

iv.

The approved entity shall not get any direct or indirect benefit from the notified agricultural extension project except the deduction of the eligible expenditure in accordance with the provisions of section 35CCC of the Act, rule 6AAD and this rule.

v.

Under the project only product neutral training would be given except a short session on company's profile and products.

vi.

All expenses (not being expenditure in the nature of cost of any land or building), as reduced by the amount received from beneficiary, if any, incurred wholly and exclusively for undertaking an eligible agricultural extension project shall be eligible for deduction under section 35CCC:

Provided that any expenditure incurred on the agricultural extension project which is reimbursed or reimbursable to the assessee by any person, whether directly or indirectly, shall not be eligible for deduction under section 35CCC.

vii.

Where a deduction under this section 35CC of the Act is claimed and allowed for any assessment year, deduction shall not be allowed in respect of such expenditure under any other provisions of the Act for the same or any other assessment year.

viii.

Database of extension workers under this project would be given to the District Agricultural Committee (DAC) concerned in the respective State. In addition, applicant may provide the agricultural extension services through input dealers under DAESI ('Diploma in Agricultural Extension Services for Input Dealers') being run by the National Institute of Agricultural Extension Management, Hyderabad ('MANAGE') as the 12th Plan scheme for DAESI has a specific stipulation in this regard.

ix.

The approved entity shall, on or before the due date of furnishing the return of income under sub-section (1) of section 139, furnish the following to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, namely:—

(i)

the audited statement of accounts of the agricultural extension projects for the previous year along with the audit report and amount of deduction claimed under sub-section (1) of section 35CCC;

(ii)

a note on the agricultural extension project undertaken by it during the previous year and the programme of agricultural extension project to be undertaken during the current year and the financial allocation for such programme; and

(iii)

a certificate from the Ministry of Agriculture, Government of India, regarding the genuineness of the agricultural extension project undertaken by the assessee during the previous year.

x.

Under the project only product neutral training will be given except a short session on company's profile and products.

11. The Central Board of Direct Taxes shall withdraw the approval if the approved entity:—

a.

has ceased its activities; or

b.

its activities are not genuine; or

c.

its activities are not being carried out in accordance with all or any of the relevant provisions of the Act or Rules; or

d.

its activities are not being carried out in accordance with all or any of the conditions subject to which the notification is being issued.

■■

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 6AAD	rule 37

Forms it touches. Form No. 3CP

From when

16 February 2015, being the date of issue of the notification.

What to watch

Approval runs from the date of issue of the notification, 16 February 2015, not from the date the project actually commenced.
No deduction under section 35CCC is allowed for financial year 2013-14, and for financial year 2014-15 only expenditure of the approved part of the year qualifies.
Expenditure reimbursed or reimbursable by any person is excluded by the proviso, and cost of land or building is outside the eligible expenses.
Where deduction is allowed under section 35CCC, no deduction for the same expenditure may be claimed under any other provision, for that or any other assessment year.

Where you meet it

In Godrej Agrovet Limited's return of income claiming deduction under section 35CCC, in the audit report on the project's separate books, and in the filings to be made to the Commissioner or Director on or before the due date under sub-section (1) of section 139.

What it names

Forms it names. Form No. 3CP

Rules it names. Rule 6AAD of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 47/2021 [F.No. 203/31/2014-ITA.II] / SO 1765(E) — Ministry of Finance 6 May 2021
Notification No. 48/2021 [F.No. 203/30/2014-ITA.II]/ SO 1766(E) — Ministry of Finance 6 May 2021
Notification No. 49/2021 [F. No. 203/29/2014-ITA.II]/ SO 1767(E) — Ministry of Finance 6 May 2021
Notification No. 54/2015 [F.No. 203/23/2015-ITA.II] — Government of India 26 June 2015
Notification No. 14/2015 [F.No.203/31/2014/ITA.II] — Section 35CCC of the Income-tax Act, 1961 - Expenditure on Agricultural Extension Project - Notified Eligible Agricultur 16 February 2015
Notification No. 15/2015 [F.No.203/30/2014/ITA.II] — Section 35CCC of the Income-tax Act, 1961 - Expenditure on Agricultural Extension Project - Notified Eligible Agricultur 16 February 2015

← Notification No. 15/2015 [F.No.203/30/2014/ITA.II] · Notification No.91/2015 [F.No.V.27015/4/2014-SO(NAT.COM)] / SO 461(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.