TMI Blog1972 (1) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 1922, as it stood after the amendment in 1960 – held that brick kilns run by the could not be treated as cottage industry - Question answered in the affirmative - - - - - Dated:- 6-1-1972 - Judge(s) : R. S. PATHAK., HARI SWARUP. JUDGMENT The judgment of the court was delivered by H. SWARUP J. - This is a reference under section 66(1) of the Indian Income-tax Act, 1922, in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Tribunal has held, agreeing with the Income tax Officer and the Appellate Assistant Commissioner, that the industry carried on by the assessee was not a cottage industry. The reasons given by the Tribunal for coming to this conclusion are that the assessee manufactures bricks on a large scale and employs a large number of employees and the work was-not of a nature which could be carried on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept this contention. The definition shows that an industry to be cottage industry mast utilise the labour force of the workers who use their own equipment and the process employed is also to be such which can be carried on in a cottage. The concept of " cottage industry " is different from the concept of industry in which employer and employees take part. A cottage industry is one which is tarr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that its members themselves carried on the manufacture of bricks. The bricks are manufactured through the employment of hired labour force and on a large scale, and hence the activity of the assessee cannot be termed as " cottage industry ". The same question came up for consideration before this court in District Co-operative Federation v. Income-tax Appellate Tribunal, and this court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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