MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, ihe 1 nth July, 2O<)2

INCOME-TAX

S.O. 724(E).—In exercise of the powers confeTrecTB")? section 295 read with clause (lla) of

sub-section ( i ; of section*32 of the Income-tax Act, 1961 (43 of 1961), the Central Board of

Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962,

namely:-

(|)

These rules may be called the Income-tax (Fourteenth Amendment) Rules,

2002.

(I)

They shall come Into force from the |« day of April, 2003.

In the Income-tax Rules, 1962,-

(i) in Part II.-

(a) after rule 5, the following rule shall be inserted, namely:-

"5A. Form of report by an accountant for claiming deduction under

section 32( I)(lla).

The report from an accountant which is required to be furnished by the

assessee under the third proviso to clause (lia) of sub-section (I) of section 32

shall be In Form No.3AA.";

(b) the existing rule 5A shall be renumbered as rule 5AA;

and letters "Form No.3AAA" shall be substituted;

(II) In Appendix II,-

(a) after Form No.3A, the following Form shall be inserted, namely:-

'FORM NO.3AA

[See rule 5A]

Report under section 32(l)(lla) of the Income-tax Act, 1961

I/we

have

examined

the

accounts

and

records

[name and address of the assessee with permanent account number]

relating to the business of manufacture or production of

during the year ended on

31" day of March

£m^\e>*>-—^

THE GAZETTE OF INtHA: EXTRAORDINARY

[PARTII—SEC. 3(U)1

I/we have obtained all the information and explanations which, to the best of my/our

knowledge and belief, were necessary for the purpose of ascertaining the amount of expenditure

Incurred by the assessee for acquiring and installing new plant and machinery in the new

industrial undertaking/existing Industrial undertaking.

(a)

I/we certify that the deduction to be claimed by assessee under the provisions of

clause (A) of the first proviso to clause (ila) of sub-section (I) of section 32 of the

income-tax Act, 1961, in respect of the assessment year

Is Rs

which has been determined on the basis of new plant and machinery acquired and

installed after the 31" day of March, 2002 by the assessee in the new industrial

undertaking. The said amount has been worked out on the basis of the details given in

Annexure A to this Form.

(b) I/we certify that the deduction to be claimed by the assessee under the provisions

of clause (B) of the first proviso to clause (Ila) of sub-section (I) of section 32 of the'

Income-tax Act 1961, In respect of the assessment year

Is Rs

which has been determined on the basis of new machinery and plant acquired and

installed by the assessee during the course of substantial expansion by way of increase in

Installed capacity of the industrial undertaking existing before the l ^{r t} day of April, 2002.

The said amount has been worked out on the basis of the details In the Annexure B to

this Form.

I/we, therefore, certify that the total deduction to be claimed by the assessee under

clause (Ila) of sub-section (I) of section 32 in respect of the assessment year

In my/our opinion and to the best of my/our Information and according to the Information given

to me/us, the particulars given above are true and correct.

Signed

Accountant

Notes:

Delete whichever is not applicable.

This report Is to be given by-

(i) a Chartered Accountant within the meaning of the Chartered Accountants Act,

1949 (38 of 1949); or

(il) any person who, In relation to any State, Is, by virtue of the provlsloris In sub-

section (2)of section 226 of the Companies Act, 1959 (I of 1956), entitled to

be appointed to act as an auditor of companies registered In that State.

"Actual cost" shall have the same meaning as assigned to it In clause (I) of

section 43 read with Explanation 10 of the Income-tax Act, 1961.

Substantial expansion by way of Increase In installed capacity In the case of an

Industrial undertaking existing before the I« day of April, 2002 should not be

less than twenty-five per cent

"Installed capacity" means the capacity of

production as existing on the 31^M day of March, 2002.

Where any of the matter stated In this report Is answered In the negative or

with a qualification, the report shall state the reasons therefor.

ANNEXURE A

[See paragraph 3(a) of Form No.3AA]

Details relating to the claim by the assessee in case of new industrial undertaking

under clause (A) of the first proviso to section 32( I )(iia) of the Income-tax Act, 1961

Name of the assessee

Assessment year

Business relating to manufacture or production of

Date of commencement of production

Remarks

Details of new nlant and machinery acquired and Installed In a new Industrial undertaking

SI.

No.

Name and address of

the person whom from

plant/ machinery was

acquired

Details

plant

machinery

Date on which

purchased

Date

installation

Actual cost

of the asset

ANNEXURE B

[See paragraph 3(b) of Form No.3AA]

Details relating to the claim by the assessee in cases of substantial expansion

by way of increase in Installed capacity in case of an industrial undertaking existing

before I" day of April, 2002

Part A

Name of the assessee

,2.

Assessment year

Business relating to manufacture or production of

Total installed capacity as on 31" day of March, 2002

Year In which substantial expansion by way of increase

In Installed capacity achieved

Remarks

PartB

Details of new plant and machinery acquired and Installed In an undertaking existing before the

I" day of April, 2002

SI.

No.

Name and address of

the person whom from

plant/ machinery was

acquired

Details

plant

machinery

•

Date on which

purchased

Date

Installation

Actual

cost of the

asset

I .

(b)

the existing Form No.3AA shall be renumbered as Form No.3AAA.

[NotificalionNo. 169/2002/F. No. 142/24/2002-TPL]

DEEPKA MTTTAL, Under Secy,

Note: Theprincipa] rules were published vide Notification No. S.0.969(E), dated the 26th March, 1962 and last amended by

Income-tax (Thirteenth Amendment) Rules, 2002 vide Notification S.O. No, 659(E), dated the 24-6-2002.