TMI Blog2006 (9) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the ITAT was right in law in upholding the order of the CIT(A) directing to allow double shift allowance on the additions of machinery during the year to the extent of Rs.33,48,227/- on the concern as a whole worked double shift during the year instead of on each machinery which worked double shift? (ii) Whether on the facts and in the circumstances of the case, the ITAT was right in law in upholding the order of ITR No.9 of 1995 2 CIT(A) that two interest could not be charged under section 215 and 217 (1A) simultaneously?" 2 The assessee claimed double shift allowance on the additions of machinery to the extent of Rs.33,48,227/-. The Assessing Officer negatived the claim but the CIT(A) reversed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a particular item of machinery or plant had worked double shift or triple shift. We are, therefore, unable to uphold the impugned judgment of the High Court in this regard. In our opinion, the Tribunal had rightly held that the extra shift allowance had to be calculated on the basis of the number of days on which the concern worked as a whole double shift or triple shift and not on the basis of each item of machinery being used in double shift or triple shift. Question No.4 must, therefore, be answered in the affirmative, i.e., in favour of the assessee and against the Revenue." 5 The said judgment was also followed in Sundaram Spinning Mills v. Commissioner of Income Tax, (1997) 227 ITR 301. Second question is also to be answe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e examined the submissions of the appellant and that so far as the charging of interest u/s 139(8) is considered the contention raises before me is not tenable. The provisions law have rightly been invoked. The quantum of interest u/s 139(8) would, however, be reduced in the light of this appellant order and the appellant will get consequential relief. 12.3. Coming to the interest charged u/s 215/217 simultaneously, I agree with the submissions made before me that interest can not be charged u/s 215/217. It cannot be charged both the sections simultaneously in view of Board's instructions No.951-CBDT F.No.400/30/75-ITCC, dated 28.4.76. In view there of the interest charged u/s 217(1A) is hereby cancelled. Regarding charging of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lts. 16. The learned counsel for the assessee, on the other hand, relied upon the Tribunal's decision in Oriental Scientific Dyers v. ITO (1988) 74, CTR (Trib Orders) . Reliance was also placed on the Tribunal's decision in Kesar Singh v. ITO (1988) 32, TTJ (Chd) 415 in which it could not be charged simultaneously. 17. After careful consideration of the rival submissions, we hold that two types of interests could not be charged. The learned counsel for the assessee has relied on two decisions of the Tribunal which also support the above view. In view of the said decisions, we hold that the learned CIT(A) was justified in holding that two interests could not be charged simultaneously. We also do not find any merit in the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 262 or section 264, the amount on which interest was payable under this section has been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded. (4) In such cases and under such circumstances as may be prescribed, the Income-tax Officer may reduce or waive the interest payable by the assessee under this section. (5) In this section and sections 217 and 273, "assessed tax" means the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, section 194A [section 194C] [section 194D] and section 195) so far as such tax relates to income subject to advance tax and so far as it is not du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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