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TMI Blog2015 (2) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts of this case and the material on record clearly establishes that the assessee is wholly or substantially financed by the Government and, therefore, the assessee is entitled to the benefit of exemption under section 10(23C)(iiiab) of the Income-tax Act.- Decided in favour of the assessee. - I.T.A. NO.26/2008 C/W. I.T.A. NO.918/2008 - - - Dated:- 17-6-2014 - MR. N. KUMAR AND MR. B. MANOHAR, JJ. FOR THE APPELLANT : SRI K.V. ARAVIND, ADV FOR THE RESPONDENT : SRI CHYTHANYA, K.K. ADV. JUDGMENT 1. N. Kumar J.- The Revenue has preferred these two appeals challenging the order passed by the Income-tax Appellate Tribunal (hereinafter referred to as the Tribunal for short), which has upheld the order of the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. of the income was financed by the Central Government. The assessee is enjoying exemption under section 10(23C)(iiiab) of the Act. When it was denied, the matter reached this court in the case of CIT v. Indian Institute of Management reported in [2011] 196 Taxman 276 (Karn), wherein the order of the appellate authorities was upheld by this court granting exemption for the year 1999-2000. In spite of it, for the aforesaid assessment years, as the grant of the Central Government was around 14.84 per cent. and 6.84 per cent., the Assessing Officer was of the view, it does not satisfy the requirement of section 10(23C)(iiiab) of the Act as it was not wholly and substantially financed by the Government. In the appeals, the appellate author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly financed by the Government. Therefore, to be eligible for exemption under this provision, three con ditions have to be satisfied. (1) The university or educational institutions should be existing solely for educational purposes ; (2) it should be existing not for the purposes of profit and ; (3) it is wholly or substantially financed by the Government. The word finance has not been defined under the Act. Therefore, we have to rely upon the dictionary meaning of the word finance , Blacks Law Dictionary gives the meaning 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bannerghatta Road, Bangalore-560 076. Sub : IIM, Bangalore-whether it is wholly or substantially financed by the Government under section 10(23C)(iiiab) of the Income-tax Act-clarification regarding. Sir, I am directed to refer to your letter dated nil (received in this Ministry on June 14, 2006) on the subject mentioned above and to say that your request for confirming the position that IIM, Bangalore is an Educational Institutions Financed wholly or substantially financed by the Government has been examined in this Ministry. This Ministry, 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 Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government. It is an institution wholly or substantially financed by the Government. The fact that this institution was granted land by the Government of Karnataka to the extent of 100 acres and the Government of India has funded initially 100 per cent. and it has permitted them to retain and spend the revenue so generated for the maintenance and growth and the Government of India is also granting grant every year is not in dispute. Under these circumstances, the contention of the Revenue, that the grant which is given by the Government of India in a particular year is to be taken into consideration to decide whether the institution is wholly or substantially financed by the Government is without any substance. The word wholly or substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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