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2014 (9) TMI 753 - HC - Income TaxAssessee society eligible for deduction u/s 80P(2)(a)(ii) or not - Assessee society is a cottage industry or not - criteria laid down in the Board circular No.722 dated 19.9.95 for availing benefits under Section 80 P (2) (a) (ii) or not by assessee Overriding effect of Statue over circular - Held that - The Tribunal has given a finding that all the assessees are producing handloom bed sheets and other handloom goods which are sold through outlets of Co-optex an apex marketing society formed by the Government of Tamil Nadu - recognition is available to the assessee under the Industrial Development and Regulation Act as cottage industry which is also relevant for the purpose of Income Tax Act as well - the benefit of deduction u/s 80P(2)(a)(ii) is available to all the assessees - so long as recognition is available to the respondents/assessees as cottage industry under the provisions of the Industrial Development and Regulation Act which is relevant for the purpose of Income Tax Act in the absence of specific definition of cottage industry in the Income Tax Act the Tribunal was fully justified in accepting the recognition of the assessee as cottage industry by the Central as well as the State Governments - no further document is required to be submitted by the assessees to prove that they are cottage industries. Section 80-P does not speak about any particular type of cottage industry. It is an inclusive definition - There is no sub-classification - what the statute provides u/s 80-P cannot be taken away by means of an administrative circular relying upon Commissioner of Central Excise Bolpur Vs - M/s. Ratan Melting & Wire Industries 2008 (10) TMI 5 - SUPREME COURT OF INDIA - what is provided under the statute cannot be denied by means of a circular and thereby deny the benefit to the assessees. 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 u/s 80-P of the Act when there is no specific embargo imposed under the Act - 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 by the Department can be imposed on such a claim by means of circulars to the detriment of the assessees thus the order of the Tribunal is upheld Decided against revenue.
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