TMI Blog1994 (3) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the Tribunal was justified in not excluding commission of Rs. 13,471 paid to the managing director for the purpose of remuneration to be allowed as deduction to the company under section 40(c) of the Act ? 2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in reversing the decision of the Commissioner of Income-tax (Appeals) allowing deduction of Rs. 80,301 being gratuity liability and provided in the books on the basis of actuarial valuation for the assessment year 1973-74, and Rs. 19,06,977 and Rs. 5,72,219, respectively, being the gratuity liability and not provided in the books on the basis of actuarial valuation for the assessment years 1974-75 and 1975-76 ? 3. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. CIT [1985] 156 ITR 585 in favour of the Revenue. Accordingly, we answer question No. 2 also in the affirmative and in favour of the Revenue. Question No. 4 is covered in favour of the assessee by the decision of this court in CIT v. Shri Someshwar Sahakari Sakhar Karkhana Ltd. [1989] 177 ITR 443. This question is accordingly answered in the affirmative and in favour of the assessee. We are now left only with question No. 3. The controversy in this question pertains to the allowability of extra-shift depreciation in respect of the Lakshmiwadi factory for the assessment year 1974-75. The assessee claimed extra-shift allowance on the working of its factories at Sakarwadi and Lakshmiwadi. It was noticed by the Income-tax Officer that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iple shift during the relevant previous year. " The contention of the assessee is that both the factories of the assessee should be treated as one concern and one of them having worked for the requisite number of days which entitles it to get full extra-shift depreciation allowance, the Income-tax Officer should have allowed the claim in respect of the other factory also without determining the number of days on which it had worked. In support of this contention, reliance is also placed on a decision of the Gujarat High Court in CIT v. Transpek Industry Pvt. Ltd. [1992] 194 ITR 581. We have carefully considered the submission. There is no real dispute about the legal position regarding calculation of extra-shift allowance. It has been s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------ 'Normal number of working days in the previous year'." There is no dispute that the calculation made by the Income-tax Officer is in accordance with the above circular. The only grievance of the assessee is that one of its factories having worked for the normal number of working days, in view of the decision of the Board contained in its letter dated September 28, 1970, it is entitled to the full double shift allowance in respect of the factory in question also even though during the relevant previous year, it worked only for 170 days. We have carefully considered the above submission on behalf of the assessee and also the relevant circular and letter of the Board. We, however, find it difficult to accept the same as, in our op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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