2012 (6) TMI 797

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....st the orders dated 08.09.2011 of Commissioner of Income Tax(Appeals) -I, Coimbatore for the impugned Assessment Years. 2. Grounds taken by Revenue in all 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 assessees' claim for 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 ITA No.422/Mds/11 da....

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.... 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 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 recogniti....