Section 10 in The Income Tax Act, 1961
10. Incomes not included in total income
public authority which is established, constituted, owned, controlled or substantially financed by funds provided directly or indirectly (i) by the Central Government or the Union ... appropriate Government, and includes any (i) body owned, controlled or substantially financed; (ii) non-Government organization substantially financed, directly or indirectly by funds provided
such a degree
which amounts to substantial control over the management and affairs of the
body.
SUBSTANTIALLY FINANCED
36. The words “substantially financed” have been ... been defined under the Act.
“Substantial” means “in a substantial manner so as to be substantial”. In
Palser v. Grimling
other law for the time being in force, wholly or substantially financed by the Central Government from the provisions of sub-sections
relation to the Central Government or any establishment wholly or substantially financed by that Government, or a Cantonment Board constituted under the Cantonment ... relation to a State Government or any establishment wholly or substantially financed by that Government, or any local authority, other than a Cantonment Board
institution wholly or substantially financed by the Government; (i) "High Court", in relation to a State or Union territory, means the High Court having territorial
school other than a school established, owned, controlled or substantially financed by funds provided directly or indirectly by the appropriate Government or a local authority
relation to the Central Government or any establishment wholly or substantially financed by that Government, or a Cantonment Board constituted under the Cantonments ... relation to a State Government or any establishment, wholly or substantially financed by that Government, or any local authority, other than a Cantonment Board
school other than a school established, owned, controlled or substantially financed by funds provided directly or indirectly by the appropriate Government or a local authority
provides substantial funds either directly or indirectly to
IOA to discharge its functions is the issue for consideration. The term
"Substantially financed ... Section 14(1) of CAG
Act-1971 for the term "substantially financed". According to this Section,
when the loan or grant