Karnataka High Court
The Commissioner Of Income Tax vs Deshiya Vidya Shala Samithi on 8 February, 2011
Bench: N.Kumar, Ravi Malimath
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6eet eu ae ie os sibel bet ihe Pah Tate sage ed a aged Pa poling oi tine ee co Dae Sen Cal "aT Tee ARAL AT AR A PEP nm ay ie tar BRARNATAR Mii hath, a a a, BNA LEE. POAT athe lL RAT AGRIC LES, I, OR EME She EE eB MG MOM eae emer worn status of Subs , the orders arid granted exemption. [t ie is filed by the present ag 18 urite, out ony the 18 unite is of Be.4,90,46,01126 which is the income from 12 institutions which are net - Me Sika Gales be Ba& Piller? Gill ) Gir BORN) AR , Pilla Gawd Wis d Gi BURG € PASE Aoi BALIN is Fo % sa FA Ly B me Gel Ger Ps pademert, it is not laid dewn as a proposit SMA TOU Tokar LAB Bo ek Balle getting any grant. The receipte in reapect of nor grant. | inatitutions are [email protected],65,777.28. The Governmest Grant received im reapect of 6 Jnstitutiens AB Re. 80.11,783/-. tf the percentage of Goverrument . . : F . . . nn ~ Grant in respect of only 6 imetitutiona is. taker ints sormideration, thie percentage would-be 68.57%. If the Gevernment Grant is comesiered ea agaifist all the 1S urite. percentage would bo 24.25%. Thess facts are not 5 age ee a mee :
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6. ly the pudginert relexi on by the Coramisioner of Income Tax Agpesis, the insdtution was gettiry e Pees . Government Ard to the exterit of 78.5%. Therefore, the 'High Ceurt Held, the Government Grant i of au ehiedawheten boo es Hine amet ¢ : er iy ede gehoet pe | SBN substantial natiier and that order sassea by the . @uthorities are in eccordance with law. In the aforesaid! ion of law, 06 get benefit under the aforesaid provision, the mattuton ffuset be getting more than 70% of its income ae grart.
On the contrary, we have pudgment of this court in FTA 2 om EERE 6 RET . £ oy ete, 3 4 "e. ee en Tes -- oy Oe en No SOB/ 20089 digposed of on O8.07.2010 where, after A a PUR PLPS SAD OGRE OR PREG GETA Ge haf he ee BUG UN aa PAL, PRA EE Ge LI, € ae Sw LA i PUB dO PUP WAGGA Joe Bs *, a ae PRIS, Sal ELF Que ie Bs A 8 ry bet AAS Tah RU ES fe Fs y considering Section 1O(2¢ Witerpreted, the word under the Income Tax Act. matter of witerpretation by various courts in -warious contexts. In deciding what constitut tes 'wubstantia portion of the fimerice, have taivers notg af the statutory provisions contained in the Banging Regulation Act, iS49, where, & : person who hes the beneficial iiterest of snore inert iow of the total capital subscribed by all the partriers of ti 3 ine fist x bas been held to be hav ving substantial © interest. Sitar, 'substantial mbersst' nas also been defirs ed in Section 40[2]j[a) of the Income Tau, Act were a@ person who ie having voting power of not jess thar 30% in the case of the com wpe,
--_ deemed tp have gubstantiel nvterest in the business of the co: ru pery. in thet cortext, h was he, when 36.42% conetitutes grant of the goverment ald to the educational inatitutions Involved in the said case, it was meld, it eatiefies the requirement of Section 1O(Z30) POLAR PATA FAI CAHIR LWOURT OF erLcr es adn oe z fe <f = a be a ae iad abn at abst a f e z oe oe e = set 7 A wl wot = a oa "
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7. In the faote of this case, if the Governmaént Aid. int respect of G imetitutioms which are admitted. to the Grant ia taken into consideration, the percentage would » be GR.S?S) arei Wf it is ant. inte .corwideretion ih respect of all the institutions it would be 34.33% int either event, the said goverament nid confers the etetue of Substantially Government Aided Institution and the SR5eSS68 i entitled io the exemption. "Therefore, thie order passed by The tribunal isin accordance with lew ard do .not suffer from. ary aes G. g os pon s Fas yin:
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