TaxTMI 
TaxTMI 
2015 (2) TMI 360
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....ioner of Income-tax (Appeals)-V, Bangalore, holding that the assessee is entitled to the exemption under section 10(23C)(iiiab) of the Income-tax Act, 1961. 2. The assessee-Indian Institute Management, Bangalore, was established in the year 1973. The Government of Karnataka offered 100 acres of land free of cost and a contribution to the corpus was Rs. 30 lakhs. It was registered on March 27, 1972, under the Registrar of Societies in Mysore State. It was established by the Ministry of Human Resource Development, Government of India. The board of governors was appointed by the Ministry of HRD to control the affairs of the society. The entire property and assets have been created out of the funds given by the Government of India. Starting ....
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.... the said order and restored the exemption granted. It is against the said orders, these appeals have been filed. 3. The substantial question of law that arises for our consideration as framed in I. T. A. No. 918 of 2008 on July 8, 2009, is as under : "Whether the appellate authorities were correct in holding that the term 'wholly or substantially financed by the Government' contem plated in section 10(23C)(iiiab) of the Act would include finances given to the institution, i.e., from 1972-73 till 2004-05 and not as per the finance provided during the current assessment year, i.e., 6.84 per cent. of its total income which would disentitle the assessee to claim e....
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.... of the term "finance" is to provide with capital or loan money as needed to carry on business. In the Dictionary of Advanced Law Lexicon, the meaning given is-The pecuniary resources of a Government or a company ; to provide with necessary funds. In Collins Cobuild English Dictionary, the meaning is given as-when some one finances something such as a project or a purchase, they provide the money that is needed to pay for them. In Merriam Webster's Collegiate Dictionary, the meaning is given as the obtaining of funds or capital. In the Oxford Advanced Learner's Dictionary, the meaning is given as- money used to run a business, an activity or a project. Therefore, the word "finance" means money given for establishing an educational i....
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....y, after careful examination of the matter, would like to state that- 1. The IIMs. Are the public institutions and these do not cease to be so by virtue of some of them not receiving Government grants, 'both recurring and non-recurring' for a couple of years. 2. As a matter of fact, the revenue generated by the institutions belong to the Consolidated Fund of India and the Government after a conscious decision has permitted the IIMs. To retain and spend the revenue so generated for their maintenance/growth. In view of above and the position that the IIMs. have been estab lished entirely with the budgetary support of Government, this Minis try disagrees with the contention of the Income-tax authorities that the IIMs. are not ....