https://www.taxtmi.com/caselaws?id=326760 An educational institution claiming exemption under section 10(23C)(iiiab) must satisfy both the educational-purpose test and the Government-financing test. Incidental surplus does not defeat exemption where the predominant object is education and the surplus is ploughed back into educational infrastructure and expansion; on that issue, the institution qualified. However, "wholly or substantially financed by the Government" requires direct governmental grants or contributions, and statutory fee receipts are not treated as government financing; on that issue, the institution failed. The exemption was therefore denied because the second condition was not met. en-us Fri, 22 Apr 2016 00:00:00 +0530 Mon, 02 Jan 2017 12:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326760 An educational institution claiming exemption under section 10(23C)(iiiab) must satisfy both the educational-purpose test and the Government-financing test. Incidental surplus does not defeat exemption where the predominant object is education and the surplus is ploughed back into educational infrastructure and expansion; on that issue, the institution qualified. However, "wholly or substantially financed by the Government" requires direct governmental grants or contributions, and statutory fee receipts are not treated as government financing; on that issue, the institution failed. The exemption was therefore denied because the second condition was not met. Case-Laws Income Tax Fri, 22 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326760