Rule - 18BBC (of Income Tax Rules, 1962), Income-tax Rules, 1962

 (1) For the purposes of sub-clause (iii) of clause (c) of sub-section (7) of section 80-IB (of Income Tax Act, 1961), the prescribed authority,—

(a) in relation to hotels located in an area or place referred to in clause (a) of that sub-section, shall be the Director General (Income-tax Exemptions) who shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India;(b) in relation to hotels located in any place referred to in clause (b) of that sub-section, shall be the Director General in the Directorate General of Tourism, Government of India.

(2) For the purpose of clause (a) of sub-section (7) of section 80-IB (of Income Tax Act, 1961), a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely :—

(a) such hotel is located in an area or place specified under clause (a) of the said sub-section (7);(b) there are not more than 300 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (a) of the said sub-section (7) within the jurisdiction of the revenue sub-division in which the hotel is located;(c) in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (a) of the said sub-section (7) on the recommendations of the Department of Tourism.