1978 (7) TMI 97

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....ee contended that its rolling stocks and locomotives were being used for 24 hours every day. The ITO disallowed the claim of the assessee. Being aggrieved, the assessee preferred appeals to the AAC and succeeded therein. The AAC directed the ITO to recompute the chargeable profits after allowing extra shift allowance as claimed. The revenue being aggrieved preferred further appeals to the Tribunal. The Tribunal did not accept the contentions of the revenue and confirmed the orders of the AAC. The appeals were dismissed. On the application of the CIT, Central, Calcutta, under s. 256(1) of the I.T. Act, 1961, the Tribunal has drawn up a statement of case and has referred the following question for the opinion of this court as a quest....

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.... (a) Class of asset, (b) Rate, and (c) Remarks. Under the heading "Class of asset" and sub-heading "Machinery and plant", general rate was fixed at 7%, except in the case of ocean-going steamers. Under the heading "Remarks" it was stated as follows: "An extra allowance up to a maximum of 50 per cent. of the normal allowance shall be allowed by the Income-tax Officer where a concern claims such allowance on account of double shift working and satisfies the Income-tax Officer that the concern has actually worked double shift. An extra allowance up to a maximum of 100 per cent. of the normal allowance, instead of 50 per cent. shall be allowed in computing the total income assessable for any assessment year commencing on or after t....

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....nation 2.--For the removal of doubts, it is hereby declared that no extra allowance for double or triple shift working shall be allowed in a case where the machinery or plant has been used for a period of thirty days or less than thirty days during the previous year. The special rates specified hereinafter may be adopted at the option of the assessee for electrical machinery, air-conditioning machinery, locomotives, rolling stock, tramways and railways, weighing machines, calculating machines, typewriters, neo-post franking machines, accounting machines, other office machinery, refrigeration plant, containers, etc., and motor vehicles used in these concerns." Subsequently there was another sub-heading marked "(iii)" reading as follows....