9911796707
|
Home
Issues:
1. Eligibility of extra shift allowance on air-conditioning machinery. 2. Interpretation of the relevant provisions of the IT Rules. 3. Jurisdiction of the Commissioner under section 263 of the IT Act. Analysis: The appeal before the Appellate Tribunal ITAT BOMBAY-E involved the eligibility of extra shift allowance on air-conditioning machinery installed by a limited company engaged in weaving artificial silk cloth. The Commissioner, under section 263 of the IT Act, reviewed the assessment and concluded that the air-conditioning machinery was not eligible for the allowance as it fell under a specific category in the IT Rules. The assessee argued that the air-conditioning machinery, when integrated into the art silk manufacturing machinery, should be considered part of the latter category, which was eligible for the allowance. The representative relied on legal precedents to support this argument, emphasizing that machinery's use in a specific manufacturing process altered its classification for tax purposes. On the other hand, the department's representative contended that the air-conditioning machinery was distinctly categorized in the IT Rules and could not be reclassified for the purpose of claiming the extra shift allowance. After considering both parties' arguments and the facts, the Tribunal held in favor of the assessee. It interpreted the relevant provisions of the IT Rules to conclude that when air-conditioning machinery is an integral part of a manufacturing process, it should be categorized accordingly. The Tribunal found support in legal precedents cited by the assessee and noted that the air-conditioners were included in the factory machinery, distinct from ordinary electrical installations. Ultimately, the Tribunal canceled the Commissioner's order under section 263, upholding the original assessment by the ITO and allowing the appeal filed by the assessee.
|
