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Agricultural development allowance
Agricultural development allowance.
35C. (1)(a) Where any company 1[or a co-operative society] is engaged in the manufacture or processing of any article or thing which is made from, or uses in such manufacture or processing as raw materials, any product of agriculture, animal husbandry, or dairy or poultry farming, and has incurred, after the 29th day of February, 1968, whether directly or through an association or body which has been approved* for the purposes of this section by the prescribed authority† any expenditure in the provision of any goods, services or facilities specified in clause (b) to a person [not being a person referred to in clause (b) of sub-section (2) of section-40A ] who is a cultivator, grower or producer of such product in India, the company 1[or co-operative society] shall, subject to the provisions of this section, be allowed a deduction of a sum equal to one and one-fifth times the amount of such expenditure incurred during the previous year.
(b) The goods, services or facilities referred to in clause (a) are the following :—
(i) fertilisers, seeds, pesticides, concentrates for cattle and poultry feed, tools or implements, for use by such cultivator, grower or producer ;
(ii) dissemination of information on, or demonstration of, modern techniques or methods of agriculture, animal husbandry, or dairy or poultry farming, or advice on such techniques or methods ;
(iii) such other goods, services or facilities as may be prescribed.‡
Explanation : In computing the expenditure with reference to which deduction under this section is to be allowed, the amount, if any, received by the company 1[or co-operative society] in consideration of, or as compensation for, such goods, services or facilities shall be deducted.
(2) Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure of the nature specified in sub-section (1), deduction shall not be allowed in respect of such expenditure under any other provision of this Ac t for the same or any other assessment year.
1. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
* For list of approved associations, see "Taxmann's Direct Taxes Circulars", Vol.1, 1980 edn., p. 188
† See rule 6A(1).
‡ See rule 6A(2).
[As amended by the Finance Act, 1980 and the Finance (No. 2) Act, 1980]
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