2026 (3) TMI 1412

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.... : Shri Vivek Vardhan, Addl. CIT, Sr. DR ORDER PER LALIET KUMAR, J.M: This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, for the Assessment Year 2015-16, arising out of the assessment framed under section 147 read with section 144B of the Income-tax Act, 1961. 2. The brief facts, as emanating from the record....

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....d by the assessee was below the prescribed threshold, the exemption was denied, and the surplus amounting to Rs. 46,19,720/- was brought to tax. 4. The Ld. CIT(A) affirmed the action of the Assessing Officer by holding that the requirement of "substantial financing" has been specifically quantified under Rule 2BBB and the assessee having failed to satisfy the said condition, was not entitled to....

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....B, an institution shall be considered as substantially financed by the Government only if the Government grant exceeds 50% of the total receipts of such institution during the relevant previous year. In the present case, the total receipts of the assessee are Rs. 1,71,65,150/-. Therefore, to satisfy the statutory requirement, the Government grant ought to have exceeded 50% of the said amount, i.e.....