TMI Blog2011 (8) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 industry. This conclusive statutory proof is further strengthened by the fact that the assessee is working under the umbrella of the Commissioner of Handloom and Textiles, Government of Tamilnadu and obtaining various concessions like subsidies, rebates etc. in promoting the sale of its products. These concessions and facilities are given both by the State and Central Governments to protect the employment and interest of traditional workers and artisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(ii) of the Income-tax Act, 1961 as a cottage industry since its inception. But the Assessing Officer withdrew the exemption under that section for the impugned assessment year. In first appeal, the Commissioner of Income-tax (Appeals) allowed the contention of the assessee and directed the Assessing Officer to allow deduction under sec.80P(2)(a)(ii). It is on this point that the Revenue came in appeal before the Tribunal. 4. The grounds raised by the Revenue in the present appeal read as follows : 2. The learned CIT(A) erred in allowing deduction under section 80-P(2)(a)(ii) of the Act. 3. The learned Commissioner of Income-tax (Appeals) ought to have observed that there is a huge capital outlay and high turnover for the industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut 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 industry. This conclusive statutory proof is further strengthened by the fact that the assessee is working under the umbrella of the Commissioner of Handloom and T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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