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TMI Blog2000 (4) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... cles owned by the assessee under section 32A of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing extra shift allowance on building and furniture as per section 32 read with rule 5 of the Income-tax Rules, 1962 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to relief under section 35C of the Income-tax Act, 1961 ?" The assessee has filed its return on November 20, 1978, showing the total income of Rs. 2,62,601. The assessment was completed under section 144 on January 31, 1981. That was cancelled and in fresh assessment, the assessee was asked to explain why a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing and inter-departmental and inter-sectional management of the tea estate and, therefore, are entitled for investment allowance under section 32A of the Act. The Tribunal has further considered the round relating to extra shift allowance in respect of buildings and furniture used in the concern of the assessee in paras. 12, 13 and 14. The Tribunal has taken the view that as the normal allowance is equal to extra shift allowance then why the normal allowance should not be allowed. The extra shift allowance also falls within the definition of normal allowance. Therefore, the assessee is entitled for extra shift allowance, depreciation on building and furniture. The issue raised in question No. 3, the Tribunal has considered it in its j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the heads 1 and 2 in Appendix I, Part I, there is no provision for extra shift allowance to a building or furniture and fitting. Though there are different rates of depreciation in the case of buildings, i.e., 5 per cent. in case of general buildings and special rates for factory buildings, i.e., the rate of depreciation is, 10 per cent. and in the case of purely temporary erection such as wooden structures the rate of depreciation is 100 per cent. When no extra shift allowance to depreciation is provided for the building or furniture, the Tribunal has erred in concluding that the building and furniture in the case of this assessee is entitled for extra shift allowance. Now we come to the question whether the assessee is entitled for dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as under : "It would be evident from the above analysis that if any amount is spent by the assessee for developing his/its own land, or for improving seeds or providing modern or better techniques for its own purposes, deduction cannot be allowed, because the section contemplates goods, services or facilities being provided to another person, and not by the assessee to himself/itself. It may, however, happen that though the agricultural operations are carried on, on its own land, let the land may be used for providing better seeds to other agriculturists, or for dissemination of information to them, or the land may be used as a demonstration farm for application of modern techniques or methods of agriculture, etc., for the benef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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