TMI Blog2002 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of primary society raw material for manufacturing through the primary society. - When the society has full control over the manufacturing activities of weavers, the assessee-society is engaged in the cottage industry. When the assessee is engaged in the cottage industry though through the primary society, the benefit cannot be denied considering the scheme of the Act and the object of the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss profit of Rs. 46,28,915. The Assessing Officer has negatived the claim of the assessee on the ground that the assessee-society has no direct deal with the weavers, it helps the weavers through the primary society. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals), has allowed the claim of the assessee following the decision of the Kerala H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view taken by the Commissioner of Income-tax (Appeals). Mr. Mathur, learned counsel for the Revenue, submits that in the decision of the apex court in Kerala State Co-operative Marketing Federation Ltd. v. CIT [1998] 231 ITR 814, the decision was on section 80P(2)(a)(iii) and not on section 80P(2)(a)(ii), while the assessee has claimed a deduction under section 80P(2)(a)(ii). Mr. Mathur plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of India through the conduct of primary societies carried out at grass-root level by individual weavers at their cottages for which the assessee purchases the yarn and gives it to weavers for weaving and in turn, the assessee gives weaving charges to the weavers through the primary society and the whole production process is monitored / supervised by the assessee. After the manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage industry. When the assessee is engaged in the cottage industry though through the primary society, the benefit cannot be denied considering the scheme of the Act and the object of the provision to be achieved to give benefit to the weavers and to encourage such societies for the benefit of the weavers. In the result, we find no force in this appeal. Consequently, the appeal is dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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