2010 (8) TMI 890

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.... is by the revenue challenging the order passed by the Tribunal holding that the assessee is entitled to exemption under section 10(23C)(iiiab) of the Income-tax Act and accordingly, dismissing the appeal filed by the revenue. 2. The assessee is an educational institution. It claimed exemption under section 10(23C)(iiiab ) of the Income-tax Act (for short, hereinafter referred to as, 'the Act')....

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....d an appeal. The Commissioner (Appeals) took note of the contribution made by the Central Government from the years 1972-73 to 2004-05 and held that the assessee is substantially financed by the Government and accordingly, set aside the assessment order and granted exemption claimed by the Assessee. Against the said order, the Revenue preferred the appeal before the Appellate Tribunal. The Appella....

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....No. 808 of 2009], where it was held as under : "Para-4. The word 'substantial' has not been defined under the Income-tax Act. However, it has been the subject-matter of interpretation by various Courts in various contexts. The authorities in deciding what constitutes a 'substantial' portion of the finance have taken note of the statutory provisions contained in the Banking Regulation Act, 1949,....

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....d out whether the grant of 36.42 per cent of total receipts constitutes substantial finance by the Government." 5. Applying the aforesaid law, in the instant case, the total income of the assessee from all sources is 20.61 lakhs. Out of which, a sum of Rs. 7.80 lakhs which represents only 37.85 per cent of the total income is financed by the Central Government. The other source of income being ....