DEPUTY COMMISSIONER OF INCOME TAX(EXEMPTIONS),LUCKNOW, LUCKNOW vs. LUCKNOW UNIVERSITY, LUCKNOW

ITA 341/LKW/2023Status: DisposedITAT Lucknow25 June 2026AY 2016-176 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) erred in applying the High Court judgment as the Explanation to Section 10(23C)(iiiab) was introduced before the assessment year. However, if the exemption is denied, depreciation should be allowed as a normal deduction.

What were the facts?

The assessee, Lucknow University, claimed exemption under Section 10(23C)(iiiab). The Assessing Officer (AO) denied this exemption, stating the university was not substantially financed by the government and disallowed depreciation. The CIT(A) allowed the exemption and depreciation, relying on a High Court judgment.

What were the issues?

Whether the educational institution was substantially financed by the government for exemption under Section 10(23C)(iiiab) and the allowability of depreciation when exemption is denied.

Which sections of the Income-tax Act were involved?

Section 10(23C)(iiiab), Rule 2BBB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘A’ BENCH, LUCKNOW

Hearing: 01.04.2026Pronounced: 25.06.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the Department against the orders of the ld. CIT(A), NFAC dated 5.08.2022, wherein the ld. CIT(A) has allowed the appeal of the assessee against the assessment order passed by the ld. AO under section 143(3) for the A.Y. 2016-17 on 22.12.2018. The grounds of appeal are as under:- “1. The Ld. CIT Appeals) NFAC has erred in law and facts by deleting the disallowance of Rs 9,62,81,201/-on account of depreciation.

2.

The Ld. CIT Appeals) NFAC has erred in law and facts by allowing exemption u/s 10(23C)(iiiab) of the income tax Act 1961. 3. The order of Ld. CIT(Appeals), NFAC be cancelled and the order of the AO be re

The order continues below.

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