TMI Blog1996 (4) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961, and thus, entitled for exemption?" The brief facts giving rise to this reference are thus : The assessee is a co-operative society acting as the apex society for the primary societies of weavers. It supplies raw material and machinery to the primary societies to be supplied to weavers and then purchases the manufactured goods from them to be sold at fair price in the market. In response to a notice issued under section 148 of the Income-tax Act, the assessee filed its return at nil after claiming exemption under section 80P of the Act. It was submitted that since the society was engaged in the activities covered by clause (a)(ii) of section 80P(2) of the Act, therefore, the assessee is entitled to deductions admissible in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own personal level or at the grass roots level. Therefore, the benefit has been given treating the apex society which ultimately purchased their goods from the primary society and they are the subsidiary of the apex society. Therefore, there is no hesitation in holding that these primary co-operative societies are engaged in a cottage industry and they are entitled to the benefits as given under section 80P(2)(a)(ii) of the Act. A similar question came up for consideration before this court in Addl. CIT v. Chichli Brass Metal Workers Co-operative Society Ltd. [1978] 114 ITR 720 and there also, their Lordships after considering the question, have taken the view that such society will be entitled to the benefits, and in that context, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the High Court having been rejected, the Department filed an application to the High Court for directing the Tribunal to state the case and refer the questions of law. The court held that the Tribunal was justified in its view that the benefit of section 80P of the Act would be available to the assessee and hence no question of law had arisen out of the order of the Tribunal. Learned counsel for the Revenue has invited our attention to the decision given by the Allahabad High Court in District Co-operative Development Federation Ltd. v. CIT [1973] 88 ITR 330, and in that case, the question was of a brick kiln and large number of workers were employed in manufacture of bricks and a question arose whether such an industry was a cottage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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