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2014 (8) TMI 1238 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - Claim denied as assessee was not advancing loans for agricultural purposes only, so, it did not fall under the definition of ‘Primary Agricultural Credit Society’, but it was a cooperative bank - As per AO assessee was not advancing loans for agricultural purposes only, so, it did not fall under the definition of ‘Primary Agricultural Credit Society’, but it was a cooperative bank carrying on banking business and was not entitled for deduction u/s 80P as provided in section 80P(4) - HELD THAT:- As in the present case, it is not clear as to whether the assessee is a ‘primary agricultural credit society’ doing business of providing financial accommodation to its members only for agricultural purposes or it is a ‘cooperative bank’ doing banking business. In the present case, AO quoted the submissions of assessee that somewhere he stated that the assessee –society was a bank carrying on banking business and somewhere he stated that the assessee society was a ‘primary agricultural credit society’, but AO had not given a concrete finding on the basis of the evidence available on the record that the assessee society was a ‘cooperative bank’ carrying on banking business. It also appears that the decision of Jayalakshmi Mahila Vivododeshagala Souharda Sahakari Ltd. [2012 (8) TMI 185 - ITAT PANAJI] was not brought to the notice of neither the AO nor the Ld. CIT(A). In the present case, it is also not clear what happened to the order of the Ld. CIT(A) for the A.Y. 2007-08 which has been followed by the Ld. CIT(A) while deciding the issue for the year under consideration. We therefore, in the absence of clear facts available on the record, deem it appropriate to set aside this issue back to the file of the Assessing Officer to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes.
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