Extra shift depreciation for hotel machinery depends on the asset's use, not the hotel business itself.

Extra shift depreciation is determined by the use and eligibility of the plant and machinery itself, not by the nature of the business carried on in the premises where it is installed. In the context of a hotel, the depreciation schedule does not exclude hotels from extra shift allowance, and the term "shift" is not defined in the Income-tax Act. On that basis, plant and machinery used in the lodging section of a hotel qualifies for extra shift allowance, consistent with the Supreme Court's view on approved hotels and the High Court's earlier ruling in the assessee's own case.

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Issues: Whether an assessee running a hotel is entitled to extra shift allowance in respect of plant and machinery used in the lodging section.

Analysis: Extra shift depreciation is allowable on machinery and plant with reference to the asset itself, and not by reason of the nature or character of the activity carried on in the premises where it is installed. There is no provision in the depreciation schedule excluding hotels from extra shift allowance, and the expression "shift" is not defined in the Income-tax Act. The question had already been answered by the Supreme Court in the context of approved hotels and followed by the same High Court in the assessee's own case.

Conclusion: The assessee was entitled to extra shift allowance on the plant and machinery used in the lodging section, and the question was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Depreciation and extra shift allowance are determined by the use and eligibility of the machinery, and a hotel is not excluded from claiming extra shift allowance merely because its business is that of running a hotel.

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