TMI Blog1997 (2) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee would be entitled to extra shift allowance on, (1) the arc furnace, and (2) the power travel electric lift used in its factory?" In so far as the first question that has been referred to us is concerned, learned counsel appearing for the Revenue has fairly stated that the issue raised in the first question is fully covered by the decision of the Supreme Court in the case of CIT v. Gwalior Rayon Silk Manufacturing Co. Ltd. [1992] 196 ITR 149 and against the Revenue. Following the said judgment, the Tribunal was right in holding that the assessee was entitled to depreciation on the roads laid inside the factory premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isted in the table. One such item is electrical machinery and the relevant entry reads as under : "(1) Electrical machinery---switchear and instruments, transformers and other stationary plant and wiring and fittings of electric light and fan installations." The Appellate Tribunal found that the arc furnace cannot be treated as electrical machinery. The question what is electrical machinery was the subject-matter for consideration before this court with reference to the same depreciation schedule in CIT v. M. S. Sahadevan [1980] 123 ITR 820 (Mad) and this court, after considering the entry held as under : "Wherever the machinery is such that in-built into it is the electric motor, then it would be electrical machinery. For instance, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionary one and it has movable parts and hence, cannot be regarded as electrical machinery. That view of the Appellate Tribunal that it is not a stationary one is not a relevant factor to determine whether the power travel electric lift can be regarded as electrical machinery or not. The case has to be decided on the basis of the tests laid down by this court in the case of M. S. Sahadevan [1980] 123 ITR 820. Since the Tribunal has not applied the proper tests to determine whether the power travel electric lift can be regarded as an electrical machinery, the view of the Tribunal that the assessee is entitled to extra-shift allowance on the cost of the power travel electric lift is not sustainable in law. Therefore, we are of the view that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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