Government-financing eligibility for an educational institution...

Government-financing eligibility for an educational institution exemption may account for University Grants Commission-distributed Central Government grants and notional interest on Government-granted land, alongside pervasive statutory control by the State Government. Where those components cause Government funding to exceed the prescribed share of total receipts, the institution satisfies the financing condition for exemption. A penalty for under-reporting or misreporting founded solely on denial of that exemption cannot continue once the underlying assessment addition is deleted.