2001 (4) TMI 76 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, allowing extra shift allowance on plant and machinery installed in a hotel's restaurant section. The decision was based on the Supreme Court's ruling that depreciation is allowed on machinery and plant regardless of the nature of the activity. The court clarified that the concept of shift applies to workers, not the establishment, making hotels eligible for extra shift depreciation allowance. The Revenue's argument that the hotel building cannot be considered plant was dismissed as the allowance pertained to machinery usage, not building depreciation.