2011 (8) TMI 1084

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.... by the Revenue. The relevant assessment year is 2007-08. The appeal is directed against the order of the Commissioner of Income-tax (Appeals)-I, Coimbatore dated 31.12.2010 and arises out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. The assessee is a Handloom Weavers Cooperative Society (HWCS). The Society is working under the umbrella of the Commissioner of Han....

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....there is a huge capital outlay and high turnover for the industry to be termed as cottage industry. 4. The learned CIT(A) ought to have observed that the assessee in this case is not engaged in cottage industry for availing the benefits. 5. The learned CIT(A) should have observed that the Board has clarified vide Circular No.722 dated 19.9.95 that a cottage industry is which is carried on a ....

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....e Government of Tamilnadu. The main reason pointed out by the Assessing Officer to deny the benefit of cottage industry to the assessee is that the size of the assessee's establishment is too big that it employed more than 2000 workers; its turnover are crores and crores of rupees and it is a very big co-operate society engaged in producing handloom goods etc. But we do not find that these objecti....

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....ates 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 artisans in different fields of cottage industries. Handloom is a traditional industry in India deploying a large number of workers. The handloom provides substantial amount of employment to rural pop....