1971 (9) TMI 52

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.... Income-tax Appellate Tribunal has referred the following questions for the opinion of this court : " (i) Whether, on the facts and in the circumstances of the case, the business of brick-kilns is not a cottage industry and, hence, income therefrom is not exempt from tax ? (ii) Whether, on the facts and in the circumstances of the case, the claim for depreciation, on the amount incurred for ....

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....g to those reports, a " cottage industry " was one carried on wholly and primarily in the homes of artisans and occasionally in small factories where not more than nine workers were employed. The assessee preferred an appeal, but the appeal was dismissed by the Appellate Assistant Commissioner. A second appeal by the assessee was dismissed by the Income-tax Appellate Tribunal. The Tribunal affirme....

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....refore, it could not be said that any " cottage industry " was being carried on. In our opinion, the Tribunal is right in holding that the assessee is not entitled to exemption under section 14(3)(i)b). The assessee cannot be said to be engaged in a " cottage industry ". The expression " cottage industry " contemplates an industrial activity of which a well-recognised feature is that it is comm....

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.... amount incurred in the purchase of land. The claim was rejected by the Income-tax Officer and, thereafter, by the Appellate Assistant Commissioner. The Tribunal pointed out that the depreciation claimed was in respect of open land appurtenant to the building. It declined to allow depreciation as it was not sanctioned under the Income-tax Act. Before us, learned counsel for the assessee has been u....