Ajit K. Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1978-79, the following question of law has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that extra shift depreciation allowance for triple shift working was not available to the assessee's approved hotel ?"
(2.) The facts leading to this reference are stated hereinafter.
(3.) The assessee is a private limited company and derived income from hotel business. The assessee's hotel is an approved one. According to the assessee, its hotel worked triple shift during the previous year relevant to the assessment year under consideration. The assessee claimed before the Income-tax Officer extra shift depreciation allowance for triple shift working. This claim was disallowed by the Income-tax Officer on the ground that the assessee is entitled to extra depreciation allowance under sub-item (iii) of Item No. III of Part I of Appendix I of the Income-tax Rules, 1962, being an approved hotel and as such extra shift allowance for triple shift working was not available to it under sub-item (iv) thereof. He also relied on the Central Board of Direct Taxes Circular No. 109 dated March 20, 1973 see [1973] 89 ITR (St.) 30. This finding was upheld by the Commissioner of Income-tax (Appeals). On further appeal, it was contended before the Tribunal on behalf of the assessee that sub-item No. (iii) related to extra depreciation allowance for approved hotels only whereas sub-item (iv) covers extra shift depreciation allowance for triple shift working and that this could not be disallowed only because the assessee's hotel is an approved one. This contention was opposed by the departmental representative who relied on the decision of this Tribunal in the case of Hotel Banjara Ltd. v. ITO. Following the said decision of the Hyderabad Bench, this Tribunal upheld the finding of the Commissioner of Income-tax.;