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2022 (6) TMI 231 - ITAT HYDERABADDisallowance of exemption u/s 10(1) - Admission of additional evidence - HELD THAT:- Having admitted the said documents, the matter is restored to the file of the AO with the following directions:- AO shall examine the case of the assessee de-novo in the light of these documents/ statements and any other documents , record etc and thereafter record a categorical finding whether the nature of the activities of the assessee are agricultural in nature and whether the assessee is entitled to claim deduction u/s 10(1A) of the Act or not . AO may exercise his power as conferred under the IT Act for examining and enforcing attendance of any person whether farmers, organizers or the officials of the company for the purpose of recording statements, etc. AO while deciding the issue shall follow principles of natural justice and afford opportunity of hearing to the assessee in accordance with law and permit the assessee to file any document or evidence to prove its case In the light of the above, the grounds raised by the revenue against the action of the CIT(A) in deleting the disallowance of exemption claimed by the assessee u/s 10(1) of the Act are treated as allowed for statistical purposes. Disallowance u/s 14A - HELD THAT:- As submitted by the ld. DR that whether the nature of the business of the assessee is agricultural or not to be decided by the AO and, therefore, the outcome of the result will have bearing on the application of section 14A. Therefore, we remit the issue to the file of the AO with a direction to compute the disallowance u/s 14A based on the outcome of the nature of the business of the assessee. Thus, the ground raised by the assessee is treated as allowed for statistical purposes.
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