Extra-shift depreciation allowance requires factory-wise factual findings before the governing circular can be applied.

Entitlement to extra-shift depreciation allowance could not be decided without specific factual findings on the nature of the factory and the plant, because the governing circular and instruction required a factory-wise inquiry. The Tribunal had treated the assessee's operations as a single concern and granted the allowance without determining whether there were more than one factory, whether the claim was made factory-wise, and whether the expansion plant was an independent factory or merely part of a factory. The matter was therefore remitted for fresh consideration on the relevant factual and legal issues, and no final answer was given on the merits of the allowance claim.

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Issues: Whether the Tribunal had examined the assessee's entitlement to extra-shift depreciation allowance in the light of the relevant circular and instruction, and whether the matter required fresh factual findings on the nature of the factory and plant.

Analysis: The assessment year concerned a claim for extra-shift depreciation allowance in respect of the Barium Carbonate (Expansion) Plant. The earlier remand required the Tribunal to consider the assessee's claim under the circular and instruction governing extra-shift allowance. The Tribunal, however, proceeded on the broad footing that the assessee's entire operations constituted one concern and granted the allowance without entering the specific factual findings needed to apply the circular and instruction. The necessary questions were whether the assessee had more than one factory, whether the allowance was claimed factory-wise, and whether the expansion plant was an independent factory or only part of a factory.

Conclusion: The matter required fresh consideration by the Tribunal and the question referred was declined to be answered.

Final Conclusion: The reference was sent back for reconsideration on the relevant factual and legal issues, and no final answer was given on the merits of the allowance claim.

Ratio Decidendi: Where the application of an allowance depends on factual inquiries under a governing circular or instruction, the court will not answer the reference on an incomplete factual foundation and may remit the matter for fresh findings.

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