TMI Blog1990 (4) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... however, hastened to add that the appeal had been filed with a view to keep the matter alive. Faced with the situation the learned Departmental Representative supported the order of the CIT(A). 3. We have examined the rival submissions and have also perused the orders of the tax authorities as also the orders of the Tribunal for asst. yrs. 1981-82 to 1983-84 copies of which were furnished to Supreme Court during the course of the hearing. The assessee's claim for investment allowance has been rejected and consistently with these orders we reject the same in the present assessment year as well. The order of the CIT(A) in this respect is confirmed. 4. The next ground in the assessee's appeal pertains to the addition made by the IAC(A) v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r enough to state that in case any verification was required to be made in respect of the facts and figures, the ITO may be asked to look into these at the time of giving appeal effects to the order of the Tribunal. 6. The learned Departmental Representative on the other hand strongly supported the orders of the tax authorities with the further submission that the various decisions of the Tribunal relied upon by the assessee's counsel had not been accepted by the Department. It was urged that in case the benefit of the various Tribunal decisions had to be given to the assessee then the matter could be restored back to the ITO for the limited purpose of checking the facts and figures. 7. We have examined the rival submissions and have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35D(1)(ii) and held that 1/10th of expenditure was allowable over a period of 10 years. He accordingly directed the ITO to allow Rs. 400 in the assessment year under consideration and a similar amount in the succeeding 9 years. 10. The learned counsel for the assessee at the outset stated that the expenditure was revenue in nature inasmuch as the hotel project at Gandhinagar was not a new project but an extension of the "Hotel business" in which the assessee was already engaged since long. A further submission which was made was that the project never came about and the amount of Rs. 4,000 paid to Gujarat Industrial and Technical Consultancy Organisation Ltd. for the preparation of a feasibility report was allowable as a deduction in ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llow depreciation @ 15 per cent and extra shift allowance on the same." At the outset the learned Department Representative was fair enough to state that in so far as the question of treating the hotel building as a "plant" was concerned, the same stood concluded in favour of the assessee by the earlier decisions of the Tribunal in its own case. He, however, hastened to add that these decisions had not been accepted by the Department and since reference applications had been preferred, the present appeal had been filed with a view to keep the matter alive. 14. The learned counsel for the assessee on the other hand supported the order of the CIT(A) vis-a-vis the decision to treat the hotel building as a "plant" and to allow depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Benches of the Tribunal in the case of ITO vs. New India Industrial Corpn. Ltd. (1988) 24 ITD 361 (Del). 19. The learned counsel for the assessee on the other hand strongly supported the order of the CIT(A) and placed reliance on the decision of the Calcutta Bench of the try in the case of ITO vs. East Coast Mfg. Marketing (P) Ltd. (1989) 30 ITD 388 (Cal). 20. We have examined the rival submission and have also perused the orders of the tax authorities. The various decisions cited at the bar by the parties have also been considered by us in deciding the issue under discussion. In our opinion, the assessee's claim for extra shift allowance must fail since although being treated as a "plant" for purposes of allowing a higher rate of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal relied upon by the assessee's counsel only supports the proposition that a hotel building would constitute a "plant" in the hands of the assessee running a hotel and accordingly be entitled to a higher rate of depreciation. This decision does not deal with the question of Extra Shift Allowance. 22. In the case of a hotel there in no question of closing it down for any period of the day or night since it is open to the customers for all the 24 hours and it is being constantly used by these customers for the period. As rightly pointed out by the Department Representative the question of running a hotel in shifts cannot arise although it could be the employees who could report on duty in various shifts. In the final analysis we re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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