MISRA, J. - (1.) UNDER Section 256(1) of the Income -tix Act, 1961, the Income -tax Appellate Tribunal, Delhi Bench C, has at the instance of the assessee submitted a statement of the case inviting the opinion of this court on the following questions : '1. Whether, on the facts and in the circumstances of the case and in accordance with the provisions of the law and rules, the assessee -company is entitled to 50 per cent, of the normal depreciation on the plant and machinery on account of double shift allowance for the whole year or for a proportionate period ?
(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal was right in deleting the sums of Rs. 3,49,742 and Rs. 44,509 being the extra price payable for the purchase of sugarcane by Messrs, Kundan Sugar Mills and Pannijee Sugar Mill?, respectively, as a deduction under the provisions of the Income -tax Act ?' 2. The assessment years involved in respect of the first question are 1954 -55 to 1958 -59, 1960 -61 and 1961 -62. The assessment year involved in respect of the second question is 1961 -62. The assessee was engaged in running two sugar mills, namely, Kundan Sugar Mills at Amroha and Pannijee Sugar Mills at Bulandshahr. Previous years ended on 31st day of August. The assessee claimed double shift allowance on its plant and machinery employed in its sugar mills at 50 per cent, of the normal depreciation allowance. The Income -tax Officer found that the sugar mills had worked double shift only for certain days and, therefore, allowed extra shift allowance proportionately at 50 per cent, of the normal depreciation on the plant and machinery for the actual number of days worked. On appeal, the Appellate Assistant Commissioner allowed the assessee's claim on the ground that the factories in question were seasonal and could, therefore, be deemed to have worked for the full year if it had worked during the season. On appeal by the department before the Income -tax Appellate Tribunal the order of the Appellate Assistant Commissioner was reversed and the order of the Income -tax Officer wasrestored. At the instance of the assessee the Tribunal has now referred the aforesaid question No, 1 mentioned above for the opinion of this court. The legal position is, however, concluded by the decision in the case of Raza Sugar Co. Ltd. v. Commissioner of Income -tax : [1970]76ITR541(All) . We are, therefore, of the opinion that the assessee -company was entitled to 50% of the normal depreciation on the plant and machinery on account of double shift allowance proportionately for the actual number of days worked. The question is, therefore, answered in favour of the department and against the assessee.
(3.) THE assessee for the assessment year 1961 -62 provided Rs. 3,49,742 as extra price payable by Kundan Sugar Mills and Rs. 44,509 as extra price payable by Pannijee Sugar Mills under the provisions of the Sugar -cane (Control) Order. The Income -tax Officer disallowed this claim on the ground that it was a mere provision made for an anticipated liability and that the liability actually came to be ascertained in a much later year. On appeal, the Appellate Assistant Commissioner reversed the findings of the Income -tax Officer and directed the allowance of these sums. On appeal by the department the Income -tax Appellate Tribunal reversed the order of the Appellate Assistant Commissioner and restored that of the Income -tax Officer. Thereupon, at the instance of the assessee, question No. 2 has been referred to this court for its opinion.;