https://www.taxtmi.com/caselaws?id=794543 Interest earned on unspent grant funds was treated as incidental to government financing where an educational society was created to establish and run an engineering college, the land was allotted by the State Government, and the institution remained at the construction stage. Because the only receipts were government grants and such incidental interest, the institution was held to be wholly financed by the Government and to satisfy Rule 2BBB; exemption under section 10(23C)(iiiab) was allowed and the returned income accepted. Once the quantum addition failed, the consequential penalty under section 270A also had no independent basis and did not survive. en-us Thu, 02 Jul 2026 00:00:00 +0530 Tue, 07 Jul 2026 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794543 Interest earned on unspent grant funds was treated as incidental to government financing where an educational society was created to establish and run an engineering college, the land was allotted by the State Government, and the institution remained at the construction stage. Because the only receipts were government grants and such incidental interest, the institution was held to be wholly financed by the Government and to satisfy Rule 2BBB; exemption under section 10(23C)(iiiab) was allowed and the returned income accepted. Once the quantum addition failed, the consequential penalty under section 270A also had no independent basis and did not survive. Case-Laws Income Tax Thu, 02 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794543