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TMI Blog2015 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... tatute cannot be denied by means of a circular and, thereby, deny the benefit to the assessees. The further objection of the department that the size of the cottage industries of the assessees with number of workers would go to show that the assessees are not co-operative societies cannot at all be sustained. The mere reason that the size of the industry is big and there are large number of workers employed, is no reason to deny the assessees the benefit available to them under Section 80-P of the Act, when there is no specific embargo imposed under the Act. Accordingly, this Court holds that as long as the assessees are cottage industries, they would be entitled to the benefit of Section 80-P of the Act. No further fetters, as is done b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner of Handloom and Textiles, Government of Tamil Nadu, who is also functional Registrar of such co-operative societies. The assessees are enjoying exemption under Section 80P(2)(a)(ii) of the Act since their inception. 4. Shri G. Baskar, Advocate, appearing on behalf of the assessees, submitted that the issue in appeals filed by the Revenue has already been adjudicated by the co-ordinate Bench of the Tribunal in I.T.A. Nos.1552 to 1561/Mds/2012, for the assessment year 2009-10, decided on 2nd May, 2013. The order of the Tribunal has been upheld by the Hon'ble Madras High Court vide judgment dated 04.09.2014. The learned counsel for the assessees placed on record a copy of the judgment of Hon'ble jurisdictional Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promote the handloom industry in its status as a cottage industry. The Tribunal further observed that the assessee is mainly producing handloom bed sheets which sold through the outlets of co-optex handloom, an apex marketing society formed by the Government of Tamil Nadu. In that case also, the main reason pointed out by the Assessing Officer to deny the benefit of cottage industry to the assessee was that the size of the assessee s establishment was too big, where it employed more than 2000 workers. Its turnover is crores and crores of rupees and it is a very big co-operative society engaged in producing handloom goods. On this point, the Tribunal observed that the objections raised by the Assessing Officer on the size and extent of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en that the issue has been decided in favour of the assessee-societies for the earlier assessment years in a consistent manner. In these circumstances, we find that the Commissioner of Incometax( Appeals) is justified in accepting the claim of deduction made by the assessees in all these cases. Accordingly, the orders of the Commissioner of Income-tax(Appeals) are upheld. 7. In result, these appeals filed by the Revenue are dismissed. 6. The Hon'ble High Court while upholding the findings of the Tribunal held as under:- 12. Section 80-P provides for deduction in respect of income of co-operative societies and the said section has not laid down any specific conditions or imputations to qualify as such. However, by virtue of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clarifications/circulars issued by the Central Government and of the State Government are concerned they represent merely their understanding of the statutory provisions. They are not binding upon the court. It is for the Court to declare what the particular provision of the statute says and it is not for the Executive. Looked at from another angle, a circular which is contrary to the statutory provisions has really no existence in law. (Emphasis supplied) 13. This Court is of the considered view hat what is provided under the statute cannot be denied by means of a circular and, thereby, deny the benefit to the assessees. 14. The further objection of the department that the size of the cottage industries of the assessees with numb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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