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2020 (9) TMI 423 - HC - Income TaxEntitled to exemption in terms of Sections 10 sub Section 23C(iiiab) - HELD THAT:- Instant petitioner was carrying on the activity which squarely fell within the definition of Section 10(15) (charitable purpose) and was dependent upon the finance of the State. The Court was concerned with the factual matrix where gross receipts from different sources received by the petitioner exceeded more than a crore but since the organization was carrying out such activity, which fell wholly and squarely within the ambit and scope, fulfilling all the essential ingredients stipulated under Section 22 action of the Revenue in initiating proceedings for assessment of Income untenable in law. University established by the Government of Karnataka to be financed neither wholly nor substantially by the Government. Nor was it dependent upon it for finance. The finance of the University from the Government was only to the extent of 1% and profit from the relevant year was surplus to the extent of 500 crores, which also was not ploughed back for any activity for which the University was set up; fulfilled its object; or fees of the students reduced. Also, profits generated were far more than the permissible limits (6 to 15%) as laid down by in Islamic Academy of Education Vs. State of Karnataka [2003 (8) TMI 469 - SUPREME COURT]. It is under these circumstances; the Court held that the mandate of the law of securing contributions from the Government source and not fees collected under the statute to be Income not generated from the sources of finance of the Government. We agree with the submission made by Sri Pathy that the impugned action is not only misconceived but wholly unsustainable and untenable in law.
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