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MIS SUNDARAM SPINNING MILLS
A
v.
COMMISSIONER OF INCOME TAX, MADRAS
JULY 9, 1997
[S.C. AGRAWAL AND D.P. WADHWA, JJ.)
B
Income Tax Act, 1961 :
Extra shift allowance-Claimed by assessee--Entitlement of-c!nrespect
of the machinery added on the basis of double and tJiple shifts worked by the C
entire concem-Held, entitled.
Appeal filed by the assessee before the High Court on the question of
entitlement of extra shift allowance in respect of the machinery added
during the previous year on the basis of double and triple shifts worked by
the entire concern was answered in the negative. Hence this appeal by the D
assessee.
Allowing the appeal, this Court
HELD: In view of the judgment passed in Civil Appeal Nos. 3179-
81182 on July 9, 1997, and for the reasoning given therein, question referred E
to is answered in favour of the assessee and against the Revenue. [88-D-EJ
Mis South India Viscose Ltd. v. Commissioner of fllcome Tax, [1996)
SCR [1997) Vol. 6 SCC 393, relied on.
Mis South India Viscose Ltd. v. Commissioner of Income Tax, 135 ITR F
206, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 376 of
1985.
.
From the Judgment and Order dated 25.4.84 of the Madras High G
Court in T.C. No. 68 of 1980.
Ms. Janki Ramachandran for the Appellant.
Dr. V. Gaurishankar, B. Krishna Prasad and S. Rajappa for the
Respondent.
H
87
88
SUPREME COURT REPORTS (1997) SUPP. 2 S.C.R.
A
The Judgment of the Court was delivered by
B
c
S.C. AGRAWAL, J. This appeal by the assesscc is directed against
the judgment of the High Court of Madras dated April 25, 1984 whereby
the following question was answered in the negative, i.e., against the
assessee and in favour of the Revenue :
"Whether, on the facts and in the circumstances of the case, the
assessee is entitled to extra shift allowance in respect of the
machineries added during the previous year relevant to the assess-
ment year 1970-71 on the basis of double and triple shifts worked
by the entire concern?"
The High Court has placed reliance on its earlier judgment dated
April 24, 1984 in T.C. No. 1053-54 of 1979, Commissioner of Income Tax
v. Mis South India Viscose Ltd., which was based on the judgment in Mis
South India Viscose Ltd. v. Commissioner of Income Tax, 135 ITR 206. Civil
D Appeal Nos. 3179-81/82 filed against the said judgment of the High Court
reported in 135 ITR 206 have been allowed by our judgment pronounced ,
today and a similar question has been answered in the affirmative. For the
reasons given in the said judgment of this Court the question referred must
be answered in the affirmative, i.e., in favour of the ass~ssee and against
the Revenue. The appeal is accordingly allowed, the impugned judgment
E
of the High Court is set aside and the question referred is answered in the
affirmative, i.e., in favour of the assessee and against the Revenue. No
order as to costs.
R.K.S.
Appeal allowed.
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