TMI Blog1991 (1) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ted hereinafter. The assessee is a private limited company and derived income from hotel business. The assessee's hotel is an approved one. According to the assessee, its hotel worked triple shift during the previous year relevant to the assessment year under consideration. The assessee claimed before the Income-tax Officer extra shift depreciation allowance for triple shift working. This claim was disallowed by the Income-tax Officer on the ground that the assessee is entitled to extra depreciation allowance under sub-item (iii) of Item No. III of Part I of Appendix I of the Income-tax Rules, 1962, being an approved hotel and as such extra shift allowance for triple shift working was not available to it under sub-item (iv) thereof. He al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Part I (iii) Extra depreciation allowance for approved hotels An extra allowance of depreciation of an amount equal to one-half of the normal allowance shall be allowed in the case of machinery and plant installed by an assessee, being an Indian company, in premises used by it as a hotel where such hotel is for the time being approved by the Central Government for the purposes of section 33 of the Act. Explanation. -For the purposes of this sub-item and sub-item (iv), 'normal allowance' means the amount of depreciation allowance other than the extra depreciation allowance under this sub-item or the extra shift depreciation allowance under sub-item (iv) which is allowable under rule 5. (iv) Extra shift depreciation allowance : An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance on account of double shift working and establishes that it has worked double shift. An extra allowance is also available where a concern claims such allowance on account of triple shift working and establishes that it has worked triple shift. The contention of learned counsel for the assessee is that the hotel works triple shift and there is no justification for denying the extra shift depreciation allowance to a hotel. According to him, all hotels will be entitled to extra shift allowance depending on whether the hotel works double or triple shift. But the approved hotels are entitled to a further benefit by way of extra shift depreciation allowance. In our view, the contention of the assessee cannot be accepted. Prior to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 equal to 50% of the normal depreciation excluding extra shift depreciation and extra depreciation allowance for approved hotels. Machinery or plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " of any one previous year". (Emphasis supplied) We may also add that an approved hotel has been separately dealt with for the purpose of allowance of development rebate. On a consideration of the scheme of the Act and the Rules and the facts and circumstances of this case, we are of the view that an approved hotel cannot claim extra shift allowance in addition to extra allowance. An extra shift allowance is for double or multiple shift working of the machinery and plant in a factory or concern, whereas extra allowance is allowable only in respect of machinery and plant installed in an approved hotel. For the foregoing reasons, we answer the question in the affirmative and in favour of the Revenue. There will be no order as to costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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