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Issues:
Appeal against the order of the Commissioner under section 263 of the Income-tax Act, 1961 for the assessment year 1978-79. Analysis: The appeal was made by a company against the Commissioner's decision to revise the assessment for the assessment year 1978-79. The Commissioner proposed to revise the assessment due to discrepancies in the deduction of bonus, depreciation, investment allowance, and extra shift allowance. The company contended that the bonus was paid in accordance with the Payment of Bonus Act, 1965, and the employees were entitled to it. It was argued that the deduction of depreciation and investment allowance for certain machineries was valid as the machinery had been installed and put to use in the previous year. Additionally, the company pointed out that the calculation of extra shift allowance should be computed based on the working of the concern. The Commissioner withdrew the allowances given in the assessment order, prompting the company to appeal. The Tribunal found that the revision made by the Commissioner was unjustified. It was established that the bonus paid to employees was within the scope of the Payment of Bonus Act, and even if some employees were not entitled to it, the expenditure should be allowed under relevant sections of the Income-tax Act. The Tribunal also noted that circulars of the Board supported the company's position regarding the bonus and extra shift allowance. Regarding the investment allowance and depreciation for electrical machinery, the Tribunal gave weight to the statement of the Chief Electrical Inspector confirming the machinery had been installed and used in the previous year. The Tribunal emphasized that the Commissioner's order was made hastily, within three days of issuing the show cause notice, without proper consideration of the evidence presented by the company. Ultimately, the Tribunal canceled the Commissioner's order, allowing the company's appeal.
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