Ita/809/2009 Of The Commissioner Of Income Tax v. M/S.national Education Society

IN THB HIGH COURT OF KARNATAKA AT BANGALOREDATED THIS THE 7 DAY OF JULY 2014 PRESEHBN THR HON BLE MR. JUSTICE N. KUMAR. AND THR HON’BLE MR. JUSTICK B MANOHAR. ITA No.809 OF 2009 BETWEEN; 1. The Commissioner of Income-Tax, 00/1, Shilpashree, Vidyaranya ComplexVishveshwaranagar, Mysore-957/70 OO 2.tThe Income Tax Officer,Ward-2, Shimoga. _ APPKRLLANTS (By Sri K V Aravind, Advocate) AND: M/s.National Education Society,Balraj Urs Road, Shimoga... RESPONDENT (By Sri S Parthasarathi, Advocate) -Q-O-O-O- This ITA is filed under Section 260-A of I.T. Act,|1961 arising out of Order dated 3.8.2009 passed inITA.No.472/BNG/2009, tor the Assessment Year 2001-O2 praying to formulate the substantial questions of lawstated therein and to allow the appeal and set aside theorderpassedbytheITAT,Bangalore|1n ITANo.472/BNG/2009 dated 3.8.2009 and confirm the order of the Appellate Commissioner confirming theorder of the Income Tax Officer, Ward-2, Shimoga. This appeal coming on for hearing this day,N. KUMAR, J.delivered the following:- JUDGMENT The substantial question of law that arises for.consideration in this appeal is:-| “WhethertheaSsSSCSSC1S substantiallyfinanced|by|the| Government and entitled for benefitunder Section 10(23C)(utab) of the Act|when the assessee has received only35.94% of total receipts as grant from|the Government?” 3.|The said question arose for consideration bythis Court in the case of assessee during theassessment year 2002-03 wherein it was held that36.42% of the grant by the Government for the year2002-03 do constitute substantial finance which§entitles the assessee to the benefit of the aforesaid|provision. The said judgment squarely applies to the facts of this case also where the relevant assessment|year is 2001-02. Accordingly, the substantial questionof law is answered in favour of the assessee and againstthe revenue. The appeal is dismissed. Sd/-|JUDGE.Sd/-|JUDGE. Sd/-|JUDGE. *alb/-.