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TMI Blog2010 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, in turn, are the members of the Assessee-Society. The weavers produce cloth strictly in accordance with the directions given and under the control of the assessee. The assessee pays weaving charges to the weavers and thereafter markets and sells goods so produced. – whether the assessee can be said to be engaged in a Cottage Industry under Section 80P(2)(a)(ii) of the Act or whether it could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For Respondent - Prakul Khurana , Sanjay Jhanvar and K.C. Dua. ORDER Heard learned counsel on both sides. 2. The Assessee-Society is an Apex Society. It carries on the activity of manufacturing of cloth by supplying raw-material, i.e., yarn, to the weavers, who are the members of the primary societies, which, in turn, are the members of the Assessee-Society. The weavers produce cloth stri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80P(2)(a)(vi) of the Act? 5. It is the contention of the Department that the weavers are not the members of the Apex Society. They are the members of the primary Societies. Therefore, the assessee is not entitled to claim benefit of deduction under Section 80P(2)(a)(vi) of the Act. 6. In our opinion, on both these questions, the Assessing Officer ought to have called for the Bye-laws. It a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0P of the Act including the proviso to Section 80P(2)] keeping in mind the provisions of the Bye-laws. The said provisions of the Bye-laws will point to the nature of the business of the assessee as also entitlement of the weavers to become members of the Apex Society. The Department will examine the Janata Scheme of the Central Government to decide whether payments made thereunder would be entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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