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TMI Blog2015 (10) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to be not justifiable, we dismiss the adjournment application filed by ld. A.R. and proceed to decide the issue on merits ex-parte qua the Assessee. 3. The relevant facts as culled out from the material on record are as under. 4. Assessee is stated to be a Co.op. Society registered under Gujarat Co.op. Society Act and engaged in the business of agricultural and non agricultural activities. It electronically filed its return of income for A.Y. A.Y. 2008-09 on 29.09.2008 declaring total income at Rs. Nil after claiming deduction of Rs. 73,58,943/- u/s. 80P(2) of the Act. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 22.12.2010 and the total income was determined at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on members. He also noticed that the Assessee was carrying out mixed activities and the profits from some of the activities were eligible for deduction u/s. 80P(2) and some were not eligible for deduction but according to A.O, Assessee had claimed deduction on the profit earned from both exempted as well as non exempted activities. He was of the view that when Assessee was carrying out two types of activities one of which qualified for deduction u/s. 80P and other did not qualify for deduction, the Assessee was required to maintain separate books of accounts but however Assessee was maintaining composite accounts for exempt income as well as non exempt income. He was therefore of the view that provisions of Section 14A to be applicable. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. We find that ld. CIT(A) while deleting the addition has given a finding that the facts and circumstances of the case in the year under appeal are identical to that of A.Y. 2007-08. We find that in A.Y. 07-08, Revenue against the order of ld. CIT(A) had preferred appeal before Tribunal. The Co-ordinate Bench of Tribunal in ITA No.813/Ahd/2011 order dated 12.12.2014 decided the issue by holding as under:- 5. We find that the Assessing Officer has stated that no separate books of accounts were maintained for agricultural activities and non-agricultural activities and therefore, the total administrative expenses and interest expenses are to be apportioned in respect of the said activities to ascertain the income from the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for deduction u/s 80P and not disputed by AO. There was a loss of Rs. 40,93,683/- on the sale of agricultural & non-agri. items to the Members & Non-members so deduction u/s. 80P does not apply, but the basis of above finding of the CIT(A) is not clear from his order. In the above circumstances, in our considered view, it shall be in the interest of justice to restore the issue back to the file of the Assessing Officer for proper verification and thereafter adjudicating the issue afresh by passing a speaking order. We, therefore, set aside the orders of the lower authorities on this issue and direct the Assessing Officer to re-adjudicate the issue as per law after proper verification and after allowing proper opportunity of hearing to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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