9911796707
TMI BlogNormal depreciation/Extra shift depreciation allowance up to 1969-70/from 1970-71 in the case of seasonal factories/concerns/approved hotels - Item III(iii)/(iv) of Part I of Appendix I to Income-tax RulesX X X X Extracts X X X X X X X X Extracts X X X X ..... 0 days, 50 per cent if it worked for more than 30 days, and 100 per cent depreciation if it worked for 180 days or more. A seasonal factory was entitled to full depreciation if it worked during all the working seasons of the previous year. If it did not, depreciation allowance was admissible with reference to the period of user set forth above. NORMAL DEPRECIATION FROM 1970-71 - Normal depreciation is fully admissible for a seasonal as well as a non-seasonal factory if it worked at any time during the previous year irrespective of the period of actual user. EXTRA SHIFT ALLOWANCE UP TO 1969-70 - The allowance was in addition to the normal allowance of depreciation. It could be allowed only when the assessee had claimed and proved t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule, (b) the machinery and plant of the categories specified at sub-items (1) to (10) under clause (iv) of item III relating to "Machinery and plant (not being a ship)", in the revised rate schedule of depreciation such as locomotives, boilers, railway sidings, etc. 4. The said allowance is calculated separately for the period for which the concern has actually worked double shift only and the periods for which it has worked triple shift, expressed in terms of the proportion which such period bears to the "normal number of working days during the previous year". For this purpose, the norm of "normal number of working days during the previous year" has been fixed : a. in the case a seasonal factory or concern, at 180 days, or the nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r triple shift working will be : 135/270, i.e., one-half of the normal depreciation allowance and for double shift working the extra depreciation allowance will be: 90/270, i.e., one-third of one-half of the normal depreciation allowance. In this case, if the full amount of normal depreciation allowance is Rs. 9,000, the extra shift depreciation allowance for triple shift working will be 9,000 × 135/270, i.e., Rs. 4,500; and the depreciation allowance for double shift working will be one-third of (9,000 ×½), i.e., Rs. 1,500. EXTRA DEPRECIATION ALLOWANCE FOR APPROVED HOTELS FOR THE ASSESSMENT YEAR 1970-71 AND SUBSEQUENT YEARS - Machinery and plant installed in a hotel does not qualify for the extra shift depreciation allowance but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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