2012 (6) TMI 782

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....these appeals are similar and hence, these appeals are disposed off through a consolidated order. 3. Grievance of the Revenue is that Commissioner of Income Tax(Appeals) allowed the assessees' deduction under Section 80(P)(a)(ii) of the Income Tax Act, 1961 (in short 'the Act'). As per Revenue, assessee was not engaged in any cottage industry nor was it carrying on a business in small scale. 4 When the matter came up for hearing, Ld. Counsel for assessee submitted that the issue stood decided in favour of assessee by this Tribunal on Revenue's appeal in ITANo.422/Mds/11 dated 26.08.11 in the case of AA-399, The Chennimalai Industrial WCS Ltd. Departmental Representative fairly admitted that the issue whether assessee was eligible for ....

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....engaged in producing handloom goods etc. But 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 umbr....