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TMI Blog2015 (6) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in [1997 (7) TMI 9 - SUPREME Court] wherein the Supreme Court had occasion to consider the effect of the circular dated 28 September 1970 which is in fact reiterated in the subsequent circular dated 26 May 1985. The Apex Court has observed that extra shift allowance has to be calculated on the basis of number of days which the factory had actually worked on extra shift and the extra shift allowance has not to be calculated qua a machinery or plant in the factory. Thus as held by the Supreme Court the extra shift allowance has to be calculated on the basis of number of days in which the factory had worked for extra shift and not on the basis of individual plant/machinery working an extra shift. - Decided in favour of assessee. - ITR No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce is extended to a factory as a whole and not determined separately in respect of the working of each and every machinery/plant in the factory. Consequently, appeal of the respondent-assessee was allowed and extra shift allowance was extended to the respondent not on the basis of the extra shift the reduction plant was itself worked but on the basis of the extra shifts the factory worked. 4. On further appeal by revenue, the Tribunal by its order dated 20 June 1992 upheld the order of Commissioner of Income Tax (Appeals) and confirmed that the reduction plant is a part of the factory of the assessee. Further, reliance was also placed upon the CBDT's circular dated 26 May 1985 (reiterating the earlier circular dated 28 September 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the basis of number of days which the factory had actually worked on extra shift and the extra shift allowance has not to be calculated qua a machinery or plant in the factory. Thus as held by the Supreme Court the extra shift allowance has to be calculated on the basis of number of days in which the factory had worked for extra shift and not on the basis of individual plant/machinery working an extra shift. In view of the above, the decision of the Apex Court in South India Viscose Ltd. (supra) concludes the issue in favour of the respondent-assessee. 7. Accordingly, we answer the question as framed for our opinion in the affirmative i.e. in favour of the respondent-assessee. Accordingly, the reference application is disposed of. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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