Assessee-university was established by the State Legislature Act. It claimed exemption under section 10(23C)(iiiab). Assessing Officer held that the government grant as a percentage of total receipts was computed by assessee at 47 per cent; however, he recomputed it at 31.76 per cent. Assessing Officer held that the expression ‘substantially financed’ required a government grant to exceed 50 per cent of total receipts and, accordingly, denied exemption. CIT(A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that financing to the extent of 37.85 per cent and even 25 per cent could constitute substantial financing as held by High Courts;,therefore, the assessee was substantially financed by the Government in the relevant year and was eligible for exemption under section 10(23C)(iiiab) of the Act.  (AY. 2012-13)