{"id":5655,"date":"2018-03-19T18:29:14","date_gmt":"2018-03-19T12:59:14","guid":{"rendered":"https:\/\/www.hostbooks.com\/in\/?p=5655"},"modified":"2018-08-09T16:23:18","modified_gmt":"2018-08-09T10:53:18","slug":"rule-20-guidelines-approval-24under-clause-xix-sub-section-2-section-80c-clause-xvi-sub-section-2-section-88","status":"publish","type":"post","link":"https:\/\/www.hostbooks.com\/in\/hb\/all-rules\/rule-20-guidelines-approval-24under-clause-xix-sub-section-2-section-80c-clause-xvi-sub-section-2-section-88\/","title":{"rendered":"Rule – 20, Guidelines for approval 24[under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88"},"content":{"rendered":"
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20<\/b>.\u00a0<\/b>The Board, before granting approval to a public company,\u00a024<\/sup>[under clause (xix<\/i>) of sub-section (2) of section 80C or] under clause (xvi<\/i>) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely :\u2014<\/p>\n\n\n\n\n\n
(1<\/i>)<\/td>\n<\/td>\nAn application for approval has been made in the Form No. 59 by the public company three months before the\u00a0<\/a>25<\/sup>[eligible issue of capital].<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/a>26<\/sup>[Explanation.\u2014<\/i>For the purposes of this rule, “the eligible issue of capital” means an issue referred to in clause (i<\/i>) of the\u00a0Explanation<\/i>\u00a0to clause (xix<\/i>) in sub-section (2) of section 80C or in clause (i<\/i>) of the\u00a0Explanation<\/i>\u00a0to clause (xvi<\/i>) in sub-section (2) of section 88.]<\/td>\n<\/tr>\n
(2<\/i>)<\/td>\n<\/td>\nEvery application shall be accompanied by the following documents, namely :\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
(a<\/i>)<\/td>\n<\/td>\na copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956);<\/td>\n<\/tr>\n
(b<\/i>)<\/td>\n<\/td>\naudited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nProvided<\/b>\u00a0that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
(3<\/i>)<\/td>\n<\/td>\nEvery such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
(i<\/i>)<\/td>\n<\/td>\ntwenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board;<\/td>\n<\/tr>\n
(ii<\/i>)<\/td>\n<\/td>\nthe balance of such capital shall be invested within a period of three years from the date of approval.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n
(4<\/i>)<\/td>\n<\/td>\nEvery such public company shall submit a certificate from an accountant, as defined in the\u00a0Explanation\u00a0<\/i>in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.<\/td>\n<\/tr>\n
(5<\/i>)<\/td>\n<\/td>\nThe Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be :<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nProvided<\/b>\u00a0that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.<\/td>\n<\/tr>\n
(6<\/i>)<\/td>\n<\/td>\nThe Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
(a<\/i>)<\/td>\n<\/td>\nif such public company fails to make investments as per conditions mentioned in sub-rule (3); or<\/td>\n<\/tr>\n
(b<\/i>)<\/td>\n<\/td>\nif such public company fails to file the certificate referred to in sub-rule (4).]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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Reference: www.incometaxindia.gov.in<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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20.\u00a0The Board, before granting approval to a public company,\u00a024[under clause (xix) of sub-section (2) of [\u2026]<\/span><\/p>\n","protected":false},"author":68,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1439,1440],"tags":[],"yst_prominent_words":[1939,8070,6239,8073,8076,454,8078,8071,6859,8077,3341,3324,2421,8068,8072,8074,8075,871,461,8069],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5655"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=5655"}],"version-history":[{"count":1,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5655\/revisions"}],"predecessor-version":[{"id":7068,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5655\/revisions\/7068"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=5655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=5655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=5655"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=5655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}