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Issues:
1. Claim for depreciation on enhanced value of mill assets. 2. Claim for extra shift allowance based on days worked by the concern. 3. Taxability of charity collections in the hands of the assessee. Analysis: Issue 1: The first ground of the appeal pertains to the claim for depreciation on the increased value of the mill assets acquired by the assessee. The first appellate authority had allowed this claim, consistent with previous years' decisions in the same assessee's case. The Appellate Tribunal upheld the first appellate authority's decision, citing previous orders for various assessment years. The Tribunal confirmed the order based on the reasoning applied in earlier years, thereby dismissing the departmental appeal on this issue. Issue 2: The next ground concerns the claim for extra shift allowance based on the days worked by the concern rather than the machinery. The Departmental Representative relied on a Calcutta High Court decision, while the assessee's representative cited an Allahabad High Court decision supporting the concern-based calculation. The Tribunal noted differing views but emphasized following the Board's Circular authorizing the allowance based on the working of the concern. Referring to Supreme Court precedents, the Tribunal held that the ITO must adhere to the Board's directions, even if they deviate from the Act to benefit the taxpayer. Additionally, the Tribunal highlighted a previous decision in the assessee's case, confirming the allowance based on concern's working days. Consequently, the Tribunal upheld the first appellate authority's decision on this issue as well. Issue 3: The final ground involves the taxability of charity collections amounting to Rs. 5,967 in the hands of the assessee. The Tribunal referred to a previous decision in the same assessee's case for a different assessment year, where such collections were deemed non-taxable. Citing a Supreme Court ruling, the Tribunal determined that these receipts could not be treated as part of trading receipts. Accordingly, the Tribunal upheld the first appellate authority's decision regarding the treatment of charity collections, leading to the dismissal of the departmental appeal in its entirety. In conclusion, the Appellate Tribunal dismissed the departmental appeal, affirming the first appellate authority's decisions on all grounds, including the depreciation claim, extra shift allowance calculation, and taxability of charity collections.
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