1987 (10) TMI 101

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..... ell as the cold storage has to run all the 24 hours and, therefore, the concern worked triple shift and should be allowed extra depreciation allowance. The ITO allowed normal depreciation and has not dealt with the question of extra shift allowance. Probably it was not raised before him and the assessment order says "Depreciation as per chart filed by the assessee". Before the CIT (A) however, a claim was made for depreciation on triple shift basis. The learned CIT (A) observed that the assessee produced the wage register in support of the claim that there were different sets of employees who were paid for running the machinery for three shifts. The learned CIT (A) observed that in an order u/s 264 in the case of Laxmi Ice and Cold Storage .....

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..... rage as well as an ice factory we are of the view that the whole process of preserving things in a cold storage and of converting water into ice is based on conditioning of the air in the respective chambers. The temperature of the air in the cold storage chambers is reduced to a particular point and maintained there so that the articles kept therein are preserved. In the chambers where water is turned into ice the air is further cooled and the temperature of the air is brought to something below what is known as 'freezing point'. When the temperature is brought don to that degree, water turns into ice. If the temperature is not maintained at that point the ice will again take the shape of water. Therefore, it is only the conditioning of th .....

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..... the labour employed and the nature of their duties. He has also not taken into consideration why the aforesaid categories of machinery would not cover the assessee's case. He appears to have fallen in line with the Commissioner of Income-tax, who allowed the claim of a particular assessee u/s 264. A copy of that order has been placed before us and we find no reason whatever in the order of the Commissioner to show how extra shift allowance was admissible in the case of cold storage. The only reason discernible from his order is that a cold storage plant has to run all the 24 hours. That is a compulsion by the very nature of the activity and it does not mean that the machinery is being subjected to any extra burden than usual. We do not kno .....

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