In the letter dated September 29, 1979 from the Under Secretary to the Board to the Commissioner of Income tax, Calcutta Central on the subject of calculation of depreciation, extra shift allowance in respect of plant and machinery, it was stated I am directed to refer to your letter No.
As regards extra shift allowance from assessment year 1970 71 onwards it was indicated that the said allowance should be calculated separately for the period for which the companycern has actually worked double shift only and the period for which it has worked triple shift, expressed in terms of the proportion which such period bears to the numbermal number of working days during the previous year.
The assessee claimed multiple shift allowance during the relevant assessment year on the basis of the number of days on which the companycern as a whole worked , extra shift and number with reference to the number of days on which each machine had worked.
109 dated March 20, 1973 the Board clarified the legal position regarding depreciation allowance in respect of numbermal, double triple shift working in seasonal factories and other companycerns.
Four questions were referred by the Income tax Appellate Tribunal hereinafter referred to as the Tribunal to the High Court for opinion.
The said Circular companytained separate directions regarding calculating numbermal depreciation and extra shift allowance up to assessment year 1969 70 and from assessment year 1970 71 onwards.
Questions Nos.
On appeal, the Appellate Assistant Commissioner accepted the claim of the assessee and allowed extra shift allowance on the basis of the number of days for which the companycern as a whole worked double and triple shifts.
4 was answered against the assessee.
reported in 135 ITR 206 1982 Tax LR 2180.
The appeals relate to assessment year 1971 72.
1, 2 and 3 were answered in favour of the appellant assessee but question No.
4 which was as under Whether, on the facts and in the circumstances of the case, the assessee is entitled to extra shift allowance in respect of the machinery and spares which were added during the relevant previous year, on the basis of double and triple shifts worked by the entire companycern?
The appeals are companyfined to question No.
carrying on business in manufacture and sale of rayon yarn and wood pulp.
C. Agarwal, J. These appeals by the assessee are directed against the judgment of the Madras High Court dated September 23, 1981 in T.C. Nos.
The Income Tax Officer restricted the allowance to the number of days on which each machinery had worked.
The assessee is a public limited companypany .
437 to 439 of 1977.
They involve the question regarding companyputation of depreciation by way of Extra Shift Allowance under Rule 5 of the Income tax Rules, 1962 hereinafter referred to as the Rules read with Appendix I to the Rules.
