Tax exemption under section 35AC extended for construction of school and hostel for mentally retarded children. The Central Government specifies that the construction of a school, vocational training centre and hostel for mentally retarded children at Lucknow by Uttar Pradesh Parents Association is an eligible project under section 35AC, and, following the National Committee's recommendation that it is being executed properly, extends that specification for a further two years commencing with the assessment year 2004-2005 at an estimated cost of eighteen lakhs thirteen thousand.