JUDGMENT
R.K. Abichandani, J.
1. The Income-tax Appellate Tribunal, Ahmedabad, Bench “A”, has referred, for the opinion of this court, the following question under section 256(1) of the Income-tax Act, 1961 :
“Whether, in view of the facts and circumstances of the case, the Tribunal was right under law in holding that the extra shift allowance on electrical machinery was not allowable ?”
2. The relevant assessment year is 1974-75. The assessee is a limited company manufacturing textile goods. For the said assessment year, the Income-tax Officer had allowed normal depreciation on electrical machinery and had allowed extra shift allowance thereon. The Income-tax Officer thereafter found that the extra shift allowance was not allowable on electrical machinery in view of item III(iv) (1) of Appendix I to the Income-tax Rules, 1962. A show-cause notice was, therefore, issued to the assessee proposing to rectify the mistake. After hearing the assessee, the Income-tax Officer withdrew the extra shift allowance granted on the electrical machinery and the depreciation granted thereon On appeal, the Commissioner held that the Income-tax Officer had committed an error in invoking the provisions of section 154 of the Act, inasmuch as the question as to whether the electrical machinery shall fall within the description of item III(iv) (1) or whether the machinery formed part and parcel of the textile machinery as a whole, was a matter which could be decided only after some enquiry and on which two opinions could exist. The Commissioner of Income-tax, therefore, set aside the rectification order made by the Income-tax Officer. On appeal before the Tribunal, it was held that the assessee was not entitled to extra shift allowance on the electrical machinery. It was held that the Income-tax Officer had committed an apparent mistake and he was fully competent to rectify the same under section 154 of the Act.
3. Rule 5 of the Income-tax Rules, as it stood at the relevant time, inter alia, provided that the allowance under clause (i) or (ii) of sub-section (1) of section 32 in respect of depreciation of buildings, machinery, plant or furniture shall be calculated at the percentage specified in Appendix I to these Rules on the actual cost or, as the case may be, the written down value of such of the assets as are used for the purposes of the business or profession of the assessee at any time during the previous year. The table of rates at which depreciation is admissible is prescribed in Part I of Appendix I to these Rules. Item III(iv) deals with extra shift depreciation allowance. It has been, inter alia, provided therein that the extra shift allowance shall not be allowed in respect of the items of machinery and plant enumerated therein. The relevant portion of the said item reads as under :
“The extra shift allowance shall not be allowed in respect of any item of machinery or plant which has been specifically excepted by inscription of the letters ‘N. E. S. A.’ (meaning ‘no extra shift allowance’) against it in sub-item (ii) above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 10 per cent. applies :
(1) Electrical machinery – Switchgear and instrument, transformers and other stationary plant and wiring and fittings of electric light and fan installations.”
4. In view of the above specific provision, it is clear that the extra shift allowance benefit was not available for the electrical machinery. The, Income-tax Officer had, therefore, no power to allow extra shift allowance on electrical machinery. He had, therefore, committed a mistake which he could validly rectify under section 154 of the Act by withdrawing the extra shift allowance on the electrical machinery. We are, therefore, of the view that the Tribunal was right in holding that the extra shift allowance on electrical machinery was not allowable and the question referred to us is, therefore, answered in the affirmative, in favour of the Revenue and against the assessee.
5. The reference stands disposed of accordingly with no order as to costs.