9911796707
TMI Blog1988 (4) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon judgment. Amongst others, the petitioner carries on business in the manufacture of sugar and for that purpose, it has set up a factory with plant and machinery. Sugar is produced seasonally and for the purpose of production, the factory runs on several shifts every day during seasons of production. While submitting the returns of its income for the years 1972-73 to 1976-77, the petitioner claimed depreciation to be deducted from the gross profits to compute the income liable to tax. The Income-tax Officer having reduced the claim of depreciation, these five writ applications have been filed for a direction to accept the depreciation as claimed and to recompute the tax. It is not disputed by Mr. B. K. Mahanti, learned counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 29, such tax shall be computed in accordance with the provisions contained in sections 30 to 43A. Section 32, amongst others, provides for allowing deductions in respect of depreciation on building, machinery, plant or furniture owned by the assessee and used for the purpose of business which would be subject to the provisions of section 34. Section 34 lays down the conditions under which depreciation allowance is available. Sub-section (1) thereof provides that the deductions for depreciation shall be allowed only if the prescribed particulars have been furnished. Rule 5 read with Appendix 1, Part 1, provides for calculation of depreciation. For the purpose of appreciating the contention of Mr. Mahanti, the relevant provision in sub-item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the previous year out of which it worked triple shift on 135 days and double shift on another 90 days, the extra depreciation allowance for triple shift working will be 135/270, i.e., one-half of the normal allowance, and that for double shift working 90/270, i.e., one third, of one-half of the normal allowance ......." Mr. Mahanti submitted that depreciation on machinery and plant in respect of shifts is the same for all types of factories whether they are seasonal or otherwise. He relied upon the following decisions in support of his contention though he has very fairly submitted that the decisions relied upon by him are not directly applicable. (i) Indian Metals and Ferro Alloys Ltd. v. State of Orissa [1987] AIR 1987 SC 1727 ; (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the burden is heavy on those who attack the constitutionality of the provision to bring materials on record to come to the conclusion that the provision creates an unreasonable discrimination. In State of Kerala v. Haji K. Hail K. Kutty Naha, AIR 1969 SC 378, the taxing statute was struck down since the Legislature did not take into consideration the class to which the building belongs, the nature of construction, the purpose for which it is used, the situation, its scope for better use and other relevant circumstances. In the present case, the legislative authority has made the classification taking into consideration the nature and manner of use of the plant and machinery. I am not satisfied that any cogent material has been brough ..... X X X X Extracts X X X X X X X X Extracts X X X X
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