1996 (6) TMI 14

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..... a registered firm doing business in sea foods. It also owns a freezing plant and ice cracker. The assessment year in question is 1973-74. During the relevant accounting year, the assessee claimed triple shift allowance in the return submitted. The Income-tax Officer disallowed the claim. According to him, there is a specific provision for refrigeration plants at item No. (13) in section III-B of the depreciation table and the asset being a refrigeration plant the rate provided therein is applicable. In that view of the matter, the Income-tax Officer disallowed the claim for extra shift allowance. As against this order, the assessee filed an appeal before the Appellate Assistant Commissioner of Income-tax. While allowing the appeal, the Com .....

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..... extra allowance up to a maximum of an amount equal to the normal allowance, instead of one-half of the normal allowance, shall be allowed where a concern claims such allowance on account of triple shift working and establishes that it has worked triple shift." The above provision authorises grant of extra shift allowance only in case the assessee establishes that it has worked triple shift or double shift, as the case may be. Now we will advert as to how the authorities below have dealt with the question of extra shift allowance claimed by the assessee. The Income-tax Officer in paragraph 19 of the assessment order has pointed out that one of the conditions for granting E. S. A. is that the assessee should establish that the concern has .....

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..... meaning as has been held in CIT v. Taj Mahal Hotel [1971] 82 ITR 44. That does not mean such interpretation must always be in favour of the assessee. It depends on the context and facts of each case. Even if a wide interpretation is given to the word " plant ", the statutory requirements for the grant of such allowance cannot be dispensed with. What is provided in the rule is that the assessee must establish that it has worked double shift or triple shift, as the case may be, for claiming extra shift depreciation allowance. The view of the Appellate Assistant Commissioner that the plant must be kept ready for 24 hours as aforesaid is a matter which must be established within the framework of the above rule regarding the grant of extra shift .....

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