2006 (4) TMI 58

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....in the Fully Fashioned Unit ? 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing Extra Shift Allowance on Oil Tanks in Vanaspati Units and Storage Tank and Cooling Tower in Refinery Units? 3. Whether on the facts and in the circumstances of the case and on proper interpretation of law rules in this behalf the Appellate Tribunal was right in law in allowing Depreciation @ 20 % on Generator and Electric Transformers ? 4. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding the Refinery Units at Ludhiana and Madras as 'Industrial Under takings' for the purposes of Investment Allowance and deduction on Under section 8....

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....egarded anything than part of plant. In all fairness, the ld Sr. D.R. could not point out any specific head in the Appendix to Income-tax rules providing different rate of deprecation or any restrictions to extra shift allowance on this part of the machinery. Once it is established that these are part and parcel of the machinery and there is no specific bar under the Income-tax rules for allowance of extra shift allowance, the claim of the assessee for extra shift allowance could not be negated and was rightly admitted by Commissioner of Income-tax (Appelas). 5. A perusal of the above shows that even the Sr. D.R. who, appeared before the Tribunal did not dispute that there is any restriction on the grant of extra shift allowance on oil t....

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....e same was decided against the Revenue by the Tribunal. Counsel for the assessee has also referred to a judgment in CIT v. Saraswati Industrial Syndicate Ltd. [2002] 257 ITR 779 (P&H) to state that the Generator has been held to be an integral part of plant and machinery and on the same principle even the Electric Transformers would fall in the same category as without the use of both these, it is impossible to run the plant.  However, in view of our findings recorded above, we need not opine on this and answer the question against the Revenue and in favour of the assessee. 8. As far as question No. 4 is concerned, the counsel for the parties are agreed that the question referred to above has already been answered in favour of the a....