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TMI Blog2011 (2) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... grants and only 6 institutions are receiving the Government Grant. If the percentage of Government Grant in respect of only 6 institutions is taken into consideration, this percentage would be 68.57%. If the Government Grant is considered as against all the 18 units, percentage would be 34.33% - Held that:- when 36.42% constitutes grant of the government aid to the educational institutions involved in the said case, it was held, it satisfies the requirement of Section 10(23C)(iii)(ab), government aid centers the status of Substantially Government Aided Institution and the assessee is entitled to the exemption, the order passed by the tribunal is in accordance with law and do not suffer from any legal infirmity, appeal is dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not more than 34%, he upheld the order of the assessing authority. Aggrieved by the same, assessee preferred an appeal to the Karnataka Appellate Tribunal. 4. The tribunal, on careful examination of the entire material on record held, the assessee was substantially financed by the Government for the assessment years 1990-2000 and 2000-2001, there is no reason to deprive the status of Government Aided Institution. In other words, as per sub-clause (iv) of Section 10(23C) of the Act, there is no justification in denying status of Substantially Government Aided Institution. Accordingly, be allowed the appeal and set aside the order and granted exemption. It is against the said order, the present appeal is filed by the revenue. 5. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... word 'substantial interest' defined under the Income Tax Act. It has also been the subject matter of interpretation by various courts in various contexts. In deciding what constitutes 'substantial' portion of the finance, have taken note of the statutory provisions contained in the Banking Regulation Act, 1949, where, a person who has the beneficial interest of more than 10% of the total capital subscribed by all the partners of the firm has been held to be having substantial interest. Similarly, 'substantial interest' has also been defined in Section 40(2)(a) of the Income Tax Act where a person who is having voting power of not less than 20% in the case of the company, is deemed to have substantial interest in the business of the company. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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