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2022 (8) TMI 958 - AT - Income TaxDeduction u/s 80P - activities of the appellant extended to non-farm sector and also to non-members without giving any opportunity to the assessee - disallowing the deduction u/s 80P while recording a finding that the activities of the appellant extended to non-farm sector and also to non-members without giving any opportunity to the assessee - HELD THAT - While considering a claim of deduction u/s 80P AO has required to conduct inquiry into the factual situation as to the activities of the assessee society and arrived at the conclusion whether benefit can be extended or not in the light of the provisions of sub section 4 to section 80P of the Income Tax Act in the instant case. We understand that it is appropriate and rather prerequisite to first ascertain the facts of the case before applying the principle laid down by the higher judicial forums as relied upon by both the sides. Considering the contention of the that the appellant assessee has not been granted adequate opportunity of being heard by the Ld. CIT(A) Bathinda while confirming the action of AO while rejecting the deduction u/s 80P and hold that the activities of the appellant extended to non-farm sector and also to non-members and by way of wrong interpretation to the definition of Primary Co-operative Agricultural Rural Development Bank as given in Explanation to section 80P(4) of the Act. In the alternative plea the assessee required to restore the matter to the CIT(A) to adjudicate the issue of the claim of deduction u/s 80P of the appellant bank by recording a finding of fact afresh by passing speaking order by way of enquiry into the activities of the society bank in consonance to the objectives law an byelaws as per mandate particularly whether the activities of the appellant extended to non-farm sector and also the non-members by calling for a remand report from the AO and rebuttal to the appellant assessee. Accordingly we consider that it is fit case to be remanded to the file of the CIT(A) to pass a fresh order after granting adequate opportunity of being heard to the assessee. The assessee shall cooperate in the fresh proceedings before the CIT(A). Appeal of the assessee is allowed for statistical purposes.
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