COMMISSIONER OF INCOME TAX Vs. PURTABPORE CO LTD

JUDGEMENT

(1.) M/s. The Purtabpore Co. Ltd., the assessed, was assessed to income-tax in the assessment year 1963-64. The assessee owns and runs a sugar mill on a seasonal basis. During the assessment year, the sugar mill was run for 132 days.

(2.) In the original assessment which was completed on March 19, 1968, the Income-tax Officer allowed the assessee extra shift allowance for the whole year at the rate of 50% of the normal depreciation allowed. Subsequently, the Income-tax Officer initiated proceeding under Section 154 of the Income-tax Act, 1961, and by his order dated the 14th March reduced the extra shift allowance from 50% of the normal depreciation allowance to 50% of 132/300 of such depreciation. The extra shift allowance as originally allowed was reduced by Rs. 29,887.

(3.) On an appeal preferred by the assessee, the Appellate Assistant Commissioner, following the order of the Tribunal in respect of an earlier assessment year in the case of the assessee, held that the assessee was entitled to extra shift allowance as originally allowed and allowed the appeal.