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2021 (10) TMI 268 - AT - Income TaxDisallowance being deduction claimed u/s. 80P - Whether assessee is carrying on banking business and is a cooperative bank not entitled to deduction u/s. 80P(2)(a)(2)? - HELD THAT:- As the foundation facts are required to be ascertained by the lower authorities like definition of members, nominal members and non members, whether the assessee was caring on banking activities for the members only or for non members and whether the assessee was having the approval from Reserve Bank of India for doing banking activities. We remand back appeal to the file of Ld. CIT(A) for denovo passing of the appellate order with the following directions CIT(A) shall decide the appeal on the basis of the findings recorded by the Hon'ble Supreme Court more particularly in the matter of Mavilayi Service Cooperative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT] While deciding the issue on the basis of the above said judgment, the Ld. CIT(A) shall examine the rules of assessee-society as well as the Act under which the society was formed. For the purpose of ascertaining the scope of the activities of the assessee, the CIT(A) shall examine whether its activities were restricted to members or non members or both. Whether the assessee was having any license for carrying out the banking activities for the members and non members. Based on the above said factual findings the CIT(A) shall decide the matter after finding opportunity of hearing to the assessee as well as to the AO and passed a reasoned and speaking order. Needless to say the assessee had liberty to file any other document which it deem necessary for due disposal of the appeal and may rely upon any of the Judgment referred before us. - Appeal of the assessee is allowed for statistical purposes.
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