1988 (4) TMI 18

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.... by this common 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 couns....

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....section 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 su....

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....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 ; (ii) C....