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TMI Blog1998 (3) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ansformers for the working of textile processing machinery. The Income-tax Officer of the concerned circle has decided that as per the Income-tax Rules, 1962, Appendix I, transformers are not eligible for extra shift allowance. But, the Commissioner of Income-tax (Appeals) was of the opinion that electrical transformers should be considered as integral parts of the abovesaid textile processing machinery and, therefore, the electrical transformers are eligible for extra shift allowance. According to the Revenue, the Appendix to rule 5 sets out the rates of depreciation on different items of assets and according to it, extra shift allowance will not be available in respect of any item of machinery or plant specifically excepted by inscription ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtra shift allowance. Aggrieved by the order of the Tribunal, at the instance of the Revenue the question of law set out above has been referred for the opinion of this court. The assessee is carrying on textile processing business at Komarapalayam by using textile processing machineries in the mill premises. The fact remains that electrical transformers are installed within the abovesaid premises and the Electricity Board is supplying energy through high tension lines to the abovesaid transformers, from where electricity is supplied for the abovesaid textile processing mill to run its machineries. It is for the abovesaid transformers, extra shift allowance is claimed by the assessee, which was upheld by the Tribunal as referred to abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formers will come within the excepted item to which the general rate of depreciation of 10 per cent. is applicable. Electric transformers are admittedly used to receive electric energy from high tension lines supplied by the Electricity Board and from the abovesaid electrical transformers, the electric supply is made to the plant or machinery, in order to run the same. It is also relevant to point out that the quantum of electricity consumed by the plant or machinery will be metered only at the place where the transformers are erected by the Electricity Board to collect necessary charges for such consumption of electricity. The electrical transformers, even if they are in the premises of the assessee, will be under the control and supervi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sset and the asset of which it becomes an integral part alone is to be considered as an asset, that in other words, unless one apparatus which independently is a plant or machine, when fitted to another machine to make that machine complete, becomes an integral part of the concerned asset itself and loses its independent identity, it cannot be said that the two assets are one, but mere interdependency upon each other for their functioning does not make the two assets one for the purposes of claiming depreciation. Further, it has also been held that it is a well-known principle of interpretation that where there are two entries covering the same item, one special and another general, the applicability of the general provision shall be exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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