2012 (6) TMI 782 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against Commissioner of Income Tax(Appeals) allowing deduction u/s 80P(a)(ii) of the Income Tax Act, 1961 for the assessee.

Summary:
The appeals were filed by the Revenue against the orders of the Commissioner of Income Tax(Appeals) dated 08.09.2011 for the impugned Assessment Years. The Revenue's grievance was that the Commissioner allowed the assessees' deduction u/s 80P(a)(ii) of the Income Tax Act, claiming the assessee was not engaged in a cottage industry or small-scale business. The matter was previously decided in favor of the assessee by the Tribunal in a similar case. The Tribunal held that the assessee qualified as a cottage industry under the Industrial Development and Regulation Act, receiving various concessions and approvals from both Central and State Governments. The Revenue's objections based on the size and extent of the operation of the assessee-society were deemed legally invalid. The Tribunal concluded that the assessee was entitled to the benefit of exemption u/s 80P(2)(a)(ii) of the Income Tax Act, 1961. Consequently, the appeals filed by the Revenue were dismissed based on the previous decision of the Co-ordinate Bench of the Tribunal. The order was pronounced on Tuesday, the 12th of June, 2012.