https://www.taxtmi.com/caselaws?id=38182 A co-operative society qualifies as being engaged in a cottage industry where its members themselves manufacture goods in their own homes or dwelling houses without employing outside labour. The ordinary meaning of "cottage industry" governs the exemption under section 81(i)(b) of the Income-tax Act, 1961; the number of workers is not decisive, and the mere use of power or small machines does not, by itself, take the activity outside the exemption. The definition of "factory" under the Factories Act does not control this interpretation. On that basis, the society's income was treated as exempt under section 81(i)(b). en-us Mon, 17 Feb 1975 00:00:00 +0530 Sat, 03 Apr 2010 16:05:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38182 A co-operative society qualifies as being engaged in a cottage industry where its members themselves manufacture goods in their own homes or dwelling houses without employing outside labour. The ordinary meaning of "cottage industry" governs the exemption under section 81(i)(b) of the Income-tax Act, 1961; the number of workers is not decisive, and the mere use of power or small machines does not, by itself, take the activity outside the exemption. The definition of "factory" under the Factories Act does not control this interpretation. On that basis, the society's income was treated as exempt under section 81(i)(b). Case-Laws Income Tax Mon, 17 Feb 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38182