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TMI Blog1984 (4) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 on the basis of double and triple shifts worked by the entire concern ? 2. Whether, on the facts and in the circumstances of the case, the assessee is entitled to deduction of Rs. 1,93,430, Rs. 7,23,095 or any portion thereof, representing the additional amount paid in respect of the instalments payable towards the cost of machineries purchased from abroad, on account of fluctuations in the exchange rates for the assessment years 1972-73 and 1973-74 ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's view that the reimbursement of medical expenses incurred by the assessee would not form part of 'perquisites' for the purpose of disallowance under section 40(c) of the Income-tax Act is sustainable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [1981] 132 ITR 559 (SC). Following the said decisions, question No. 5 is answered in the affirmative and in favour of the assessee. Coming to question No. 1, it is seen that it is also covered by the decision of this court in South India Viscose Ltd. v. CIT [1982] 135 ITR 206 (Mad), which was rendered in the assessee's own case for the previous assessment year 1971-72. In this case, the Tribunal has followed its earlier decision in the assessee's own case for the assessment year 1971-72 and held that the assessee will be entitled to extra shift allowance in respect of all the machineries if the concern has worked the extra shifts during the previous year relevant to the assessment year. The decision of the Tribunal in the assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 ITR 648 [FB] and the decision in J K Synthetics Ltd. v. CIT [1979] 118 ITR 629 has also been explained by the Full Bench. The view taken by the Full Bench in Dhampur Sugar Mills Ltd. v. CIT [1980] 126 ITR 648 (All) [FB] is in accord with the view taken by the Calcutta High Court in Anantapur Textiles Ltd. v. CIT [1979] 116 ITR 851 and by this court in South India Viscose Ltd. v. CIT [1982] 135 ITR 206. Thus, all the decisions, as on this date, on the question of grant of extra shift allowance are uniform and they are to the effect that extra shift allowance can be claimed only in respect of individual machineries which have been used during the extra shifts and not in respect of the entire machineries owned by the concern. Therefore, foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly and without reference to the decision in CIT v. Manjushree Plantations Ltd. [1980] 125 ITR 150 (Mad) which dealt with the provision in section 40(c)(iii). There is considerable force in the said submissions made by learned counsel for the Revenue. A perusal of the decision in CIT v. Manjushree Plantations Ltd. [1980] 125 ITR 150 (Mad) clearly indicates that it was based on the language used in section 40(c)(iii) which used the expression "whether convertible into money or not". It is from that expression, the court concluded that it is only the non-cash benefits that could be taken as perquisites and that cash payments could not be treated as perquisites for the purpose of disallowance under section 40(c)(iii) or section 40(a)(v) it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accordingly. There will be no order as to costs. Learned counsel for the assessee makes an oral application for grant of leave to appeal to the Supreme Court against our decision on question No. 1. Learned counsel points out that though this court refused to grant leave to appeal to the Supreme Court as against the decision in South India Viscose Ltd. v. CIT [1982] 135 ITR 206 (Mad), the Supreme Court has granted special leave and in view of the same, leave may be granted by this court to the assessee to prefer an appeal to the Supreme Court as against our order on question No. 1. Having regard to the fact that the Supreme Court itself has granted special leave and as the said question No. 1 is at large now, we grant the oral leave as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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