Inadmissibility of extra shift allowance for generator motors and centrifugal pumps. - Income Tax - 1454/CBDT

INSTRUCTION NO. 1454/CBDT Dated: February 3, 1982 The question whether extra shift allowance is admissible in the case of generators motors and centrifugal pumps, came up for consideration before the board as a result of objections raised by Revenue Audit in some cases where this allowance had been granted. The view of the Audit was that grant of extra shift allowance in respect of the above items had been specifically prohibited in the I.T.Rules,1962. 2. The matter has been examined by the board in consultation with the Chief Engineer (Electrical), CPWD and the position is clarified as under. 3. The relevant entry in Appendix-1 to the I.T. Rules covered under items F-iv mentioned under head "Illustration" reads as under:- "The extra shift allowance shall not be allowed in respect of any item of machinery or plant which has been specifically excepted by inscription of the letters N.E.S.A. meaning no extra shift allowance against it in sub-item ii above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 10% applies: I) Electrical machinery -switchgear and instruments, transformers and other stationary plant.........". Accordingly to the rules of constructions the words and other stationary plant are to be constructed EJUSDEM GENERIS with switchgear and transformers. These items of machinery have no rotating parts and are to the stationary nature. Therefore the prohibition on account of grant of extra shift allowance is applicable to all such items of electrical machinery which are of stationary nature. Generators motors and centrifugal pumps are rotary machines which are not covered by the above entry and are therefore entitled to extra shift allowance. 4. This view has been accepted by the Revenue Audit. A copy of the instructions issued by the office of the C AG of India to the accountant general to drop all outstanding objections on the above point is enclosed. 5. The above instructions may be brought to the notice of all the officers under your charge.