Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1975-76, the following questions of law have been referred for the opinion of this court : Question referred at the instance of the Revenue : "Whether, on the facts and in the circumstances of the case and on a proper interpretation of the Income-tax Rules, 1962, the Tribunal was legally justified in holding that extra shift allowance was allowable on generators and other electrical machinery used for the purpose of the assessee's business ?"
(2.) Question referred at the instance of the assessee : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that part of the cost of installation of generators being ancillary equipment was not entitled to development rebate on the ground that orders for such equipment were placed after December 1, 1973."
(3.) Shortly stated, the facts are that the Income-tax Officer did not allow the assessee's claim for extra shift allowance in respect of generators and other electrical machinery on the ground that these plant and machinery fell under item III(iv)(1) of Appendix I to the Income-tax Rules, 1962, which reads as under : "(4) Electrical machinery--Switchgear and instruments, transformers and other stationary plant and wiring and fittings of electric light and fan installations (NESA).";