9911796707
TMI Blog2012 (6) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax(Appeals) -I, Coimbatore for the impugned Assessment Years. 2. Grounds taken by Revenue in all these appeals are similar and hence, these appeals are disposed off through a consolidated order. 3. Grievance of the Revenue is that Commissioner of Income Tax(Appeals) allowed assessees' claim for deduction under Section 80(P)(a)(ii) of the Income Tax Act, 1961 (in short 'the Act'). As per Revenue, assessee was not engaged in any cottage industry nor was it carrying on a business in small scale. 4 When the matter came up for hearing, Ld. Counsel for assessee submitted that the issue stood decided in favour of assessee by this Tribunal on Revenue's appeal in ITA No.422/Mds/11 dated 26.08.11 in the case of AA-399, The Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the operation of the assessee-society are legally valid to disqualify the assessee from the category of cottage industry for the purpose of the Income-tax Act, 1961. The Industrial Development and Regulation Act has classified the para meters necessary to qualify something as a cottage industry. The assessee is having the recognized status as a cottage industry under that Act. In normal sense, one should take the said recognition as the conclusive proof that the assessee is a cottage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows that 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 agree with the Commissioner of Income-tax (Appeals) that the assessee-society is entitled for the benefit of exemption under sec.80P(2)(a)(ii) of the Income-tax Act, 1961." 6. In view of the above decision of the Co-ordinate Bench, we do not find any merit in these appeals filed by the Revenue. 7. In the result, appeals of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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