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TMI Blog2011 (8) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... year is 2007-08. The appeal is directed against the order of the Commissioner of Income-tax (Appeals)-I, Coimbatore dated 31.12.2010 and arises out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. The assessee is a Handloom Weavers Cooperative Society (HWCS). The Society is working under the umbrella of the Commissioner of Handloom Textiles, Government of Tamilnadu. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the industry to be termed as cottage industry. 4. The learned CIT(A) ought to have observed that the assessee in this case is not engaged in cottage industry for availing the benefits. 5. The learned CIT(A) should have observed that the Board has clarified vide Circular No.722 dated 19.9.95 that a cottage industry is which is carried on a small scale with a small amounts of capital and a smal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer to deny the benefit of cottage industry to the assessee is that the size of the assessee's establishment is too big that it employed more than 2000 workers; its turnover are crores and crores of rupees and it is a very big co-operate society engaged in producing handloom goods etc. But we do not find that these objections raised by the Assessing Officer on the size and extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions and facilities are given both by the State and Central Governments to protect the employment and interest of traditional workers and artisans in different fields of cottage industries. Handloom is a traditional industry in India deploying a large number of workers. The handloom provides substantial amount of employment to rural population and handloom is a great contributor to the rural eco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is in fact, following the policies declared by the State and Central Governments. Since the society is performing well, it is able to expand and provide more and more employment to traditional handloom workers. 8. Therefore, in the facts and circumstances of the case, we do not find any reason to disturb the order passed by the Commissioner of Income-tax (Appeals) on this point. We a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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