TMI Blog1995 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... specifically provided in the Income-tax Rules for approved hotels only ? " The assessee-company which runs an approved hotel claims extra-shift depreciation allowance, vide Appendix I, Part I, item III, sub-item (iv), in addition to extra depreciation allowance allowable for approved hotels, vide Appendix I, Part I, item III, sub-item (iii) of the Income-tax Rules, 1962 (for short, "the Rules"). The Appellate Tribunal accepted the contention of the assessee and allowed extra-shift depreciation allowance under sub-item (iv) in addition to extra depreciation allowable for approved hotels under sub-item (iii). The Appellate Tribunal, in its order relating to the assessment year 197475 which was relied on for deciding the appeal of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowable for such approved hotels. Item (iii) is a special provision for approved hotels and item (iv) is a general provision for other concerns. Extra-shift depreciation allowance which is a general provision applicable to concerns and factories other than approved hotels is, therefore, not allowable in the case of approved hotels which are governed by the special provision. The expression 'extra shift' goes with the factory or the concern which may work day shift as well as night shift. The concept of shift working of the machinery and plant in a hotel may not arise. By the Finance (No. 2) Act of 1980, a new clause (iia) in section 32(1) has been inserted providing for further deduction by way of additional depreciation in an amount equa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s." The provisions relating to the grant of extra depreciation allowance are as follows : "(i) The machinery or plant must be owned and installed by the assessee, being an Indian company, in the premises used by it as a hotel. (ii) Such hotel must be approved, for the time being, by the Central Government for the purpose of grant of development rebate in respect of new machinery or plant at the higher rate specified in section 33(1)(ii) of the Income-tax Act. (iii) The extra depreciation allowance aforesaid is in an amount equal to one-half of the normal depreciation allowance in respect of the entire machinery and plant installed in the hotel, irrespective of the period of its actual user during the previous year. (iv) The extra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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