TMI Blog2001 (10) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... year in question the assessee filed its return declaring a total loss of Rs.47,65,82,959. Subsequently, by a revised return, the loss was indicated to be Rs.40,64,12,360. The Assessing Officer noticed that the assessee had claimed extra-shift allowance in respect of lines, wires and cables while computing the depreciation allowable. The assessee had claimed extra-shift allowance under the heading "Triple shift allowance" on two heads "On lines and wires" and "On cables". The assessee was required to show cause why the claims shall not be disallowed. The assessee's stand was that the overhead lines and wires were dategorised in the chart of depreciation as actually forming an integral part of the system, i.e., network of telephone exchanges, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was carried in appeal before the Tribunal by the Revenue. It was noted by the Tribunal that the conditions requisite for grant of extra-shift allowance were fulfilled and, therefore, the view of the Commissioner of Income-tax (Appeals) was in order. In support of the appeal learned counsel for the Revenue submitted that the artificial bifurcation made by the Commissioner of Income-tax (Appeals) of overhead and underground lines and cables, etc., does not stand to reason. According to him, the area of functioning being the same there was no scope for making such a distinction. We find that in order to be eligible for claim for deduction as extra-shift allowance the following conditions are required to be fulfilled: (a) the asset for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eering House (P.) Ltd. v. CIT [1986] 157 ITR 86 (SC), the test laid down was whether the article fulfils the function of a plant in the assessee's trading activity and whether it is a tool of his trade with which he carries on his business? If the answer is in the affirmative, it will be a plant. The inevitable conclusion in view of the legal and factual background highlighted above is that the underground cables which are used by the assessee for carrying on its business constitute plant of the assessee. That being the position, the conclusions of the Tribunal are in order. The submission that there can be no distinction between overhead cables and wires and underground cables and wires is hardly acceptable because of the expression of leg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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