9911796707
TMI Blog1997 (12) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... bad as it contained mistake apparent from record ?" 2. The relevant assessment year is 1971-72. The original assessment under s. 143(3) of the Act was made on 30th Nov., 1973. Thereafter, the ITO sent a letter dt. 6th Aug., 1976 to the assessee, stating that during the calender year 1970, the assessee was granted depreciation on additions instead of restricting it to the proportionate amount based on the number of days the additions to the machineries were used in that year. According to the ITO, on several machineries installed in the later half of the year, excess extra shift allowance was allowed as against the correct extra shift allowance admissible in proportion to the days for which the machineries were used. The ITO considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the NI old unit for the purpose. On the question whether NI expansion plant was just an expansion of the old plant or it constituted a different undertaking, it was held that this was a debatable issue and, therefore, the benefit could not have been withdrawn under the provisions of s. 154 of the Act. Against the order of the CIT(A), the assessee approached the Tribunal challenging the order to the extent that the appellate authority held that the ITO was justified in applying s. 154 of the Act for the purpose of revising extra shift depreciation allowance. The Revenue appealed against the order of the CIT(A) in not allowing withdrawal of deduction under s. 80J of the Act. 4. The Tribunal, after considering the rival contentions, hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esh licence for manufacturing a distinct marketable product 'procion' which was not earlier manufactured and that a separate building and machinery were set up for the same for which an investment of Rs. 1.13 crores was made. If, on the basis of such facts, the original assessing authority took the view that a new industrial undertaking was set up within the meaning of s. 80J, it cannot be said that any error apparent on the face of the record was committed by the AO so as to invoke the rectification power under s. 154. 7. The question as to whether the concern worked as a whole, was argued at a great length. The Revenue side contended that all the independent units of the company which was a 'concern' should be functioning to become ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he working of each factory or concern of the assessee is to be separately considered. There is no room for construing this provision so as to mean that, if the assessee has several factories which are separate and independent units, only the working days when all the separate units have worked should alone be computed as the actual working days, as sought to be suggested by the Revenue. The question whether a factory or concern works as a whole or not cannot be linked with the working of another independent factory. Where the assessee has more than one factory, each factory 's such working days are to be separately computed to work out extra shift depreciation allowance in respect of the machinery and plant of that factory. 10. The Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to all the independent units of the assessee-company. In the instant case, the Revenue was concerned with several independent industrial units of the assessee enumerated in the rectification order. The extra shift allowance was to be calculated on the basis of the number of days during which an independent factory as a whole had actually worked double shift or triple shift and the allowance was required to be calculated on the basis of the number of days a particular item of machinery or plant had worked double shift or triple shift. 11. In view of the above position, we are in complete agreement with the finding of the Tribunal that there was no justification for the ITO to exercise his powers under s. 154 for rectifying the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X
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