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 to this court : (1) Whether, on the facts and in the circumstances of the case and having regard to the provisions of the Income-tax Act and Rules and the Indian Electricity Act, 1910, the assessee was entitled to triple shift depreciation allowance on its plant and machinery ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-company is entitled to depreciation at 10 per cent. in respect of its overhead cables and wires ?
(2.) Shortly stated, the facts are that the assessee is engaged in the business of supply of electrical energy to the consumers of Hooghly, Chinsurah and Bansberia. The assessee-company purchased high voltage electrical energy from the West Bengal State Electricity Board and distributed the same by reducing the voltage and transmitting the same by the use of transformers, switchgear and overhead wiring. The assessee claimed depreciation on its plant at 10%. The assessee worked triple shift and, consequently, claimed extra-shift depreciation at 100% of the normal depreciation. Such claim of the assessee was allowed in the past. The Income-tax Officer referred to item III(i) of Part I of Appendix I and came to the conclusion that the assessee was not entitled to extra-shift depreciation. The Income-tax Officer indicated that it had been specifically provided that no extra-shift depreciation allowance is admissible in item (1) of item III(iv) of Part I of Appendix I in respect of the following : "Electrical machinery--switchgear and instruments, transformers and other stationary plant and wiring and fittings of electric light and fan installation."
(3.) He further did not agree that the assessee was entitled to depreciation at the rate of 10% on overhead cables and wires. He also did not allow extra-shift depreciation on these items.;