44A. Special provision for deduction in the case of trade,
professional or similar association.- (1) Notwithstanding
anything to the contrary contained in this Act, where the
amount received during a previous year by any trade, professional
or similar association (other than an association or institution
referred to in clause (23A) of section 10) from its members,
whether by way of subscription or otherwise (not being remuneration
received for rendering any specific services to such members)
falls short of the expenditure incurred by such association
during that previous year (not being expenditure deductible
in computing the income under any other provision of this
Act and not being in the nature of capital expenditure) solely
for the purposes of protection or advancement of the common
interests of its members, the amount so fallen short (hereinafter
referred to as deficiency) shall, subject to the provisions
of this section, be allowed as a deduction in computing the
income of the association assessable for the relevant assessment
year under the head “Profits and gains of business or
profession” and if there is no income assessable under
that head or the deficiency allowable exceeds such income,
the whole or the balance of the deficiency, as the case may
be, shall be allowed as a deduction in computing the income
of the association assessable for the relevant assessment
year under any other head.
(2) In computing the income of the association for the relevant
assessment year under sub-section (1), effect shall first
be given to any other provision of this Act under which any
allowance or loss in respect of any earlier assessment year
is carried forward and set off against the income for the
relevant assessment year.
(3) The amount of deficiency to be allowed as a deduction
under this section shall in no case exceed one-half of the
total income of the association as computed before making
any allowance under this section.
(4) This section applies only to that trade, professional
or similar association the income of which or any part thereof
is not distributed to its members except as grants to any
association or institution affiliated to it.
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