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2021 (12) TMI 541 - AT - Income TaxBenefit of exemption u/s 10(23C)(iiiac) to the assessee society - when the society is not substantially financed by the government in view of Rule 2BBB of the Income Tax Rules, 1962 - HELD THAT:- As in the light of the decision rendered in the case of CIT, Bangalore vs. Indian Institute of Management [2015 (2) TMI 360 - KARNATAKA HIGH COURT] and Rule 2BBB inserted by the IT (Thirteenth Amendment) Rules, 2014 prescribing the said percentage at 50% and by referring to the Rule 230(8) of the General Financial Rules, 2017. As passed by the ld. CIT (A) by applying the relevant Rules and law laid down in case of CIT vs. Indian Institute of Management [2015 (2) TMI 360 - KARNATAKA HIGH COURT] as the percentage of grant-in-aid to the assessee to the year under consideration is at 50.85% (which is inclusive of interest). Even otherwise, Hon’ble High Court has held that the word ‘wholly and substantially financed by the Government’ cannot be confined only to annual grants, apart from providing annual grant, if Government granted land and invested money in building and infrastructure etc. all that has to be taken into consideration. So, the case of the assessee is clearly covered under Rule 2BBB of IT (Thirteenth Amendment) Rules, 2014 having total grant-in-aid to the tune of 50.85% - in view of the matter, we find no infirmity or perversity in the impugned order passed by the ld. CIT (A), hence the appeal filed by the Revenue is hereby dismissed.
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