2013 (5) TMI 846 - AT - Income Tax

Summary

Issues involved: The judgment involves the interpretation of deduction under sec.80P(2)(a)(ii) of the Income-tax Act, 1961 for Co-operative Societies engaged in textile manufacturing.

Summary:

Issue 1: Claim of deduction under sec.80P(2)(a)(ii)
- The appeals filed by the Revenue against the orders of the Commissioner of Income-tax(Appeals) involved the rejection of deduction claimed by Co-operative Societies under sec.80P(2)(a)(ii).
- The Revenue contended that the assessees were not engaged in a cottage industry as per Circular No. 722 issued by the C.B.D.T.
- The Tribunal considered the classification of a cottage industry under the Industrial Development and Regulation Act and previous decisions supporting the status of the assessees as a cottage industry.
- The Tribunal upheld the Commissioner of Income-tax(Appeals)' decision to grant the deduction based on the consistent favorable rulings for earlier assessment years.

Conclusion:
- The Tribunal dismissed the appeals filed by the Revenue, affirming the orders of the Commissioner of Income-tax(Appeals) in favor of the Co-operative Societies engaged in textile manufacturing.