Law: Income Tax Act, 1961

Section: 32

(a) Income-tax----Depreciation---Extra-shift allowance---Plant or machinery specifically excluded from allowance---Extra-shift allowance cannot be allowed in respect of such plant or machinery---Indian Income Tax Act, 1961, S.32--¬Indian Income Tax Rules, 1962, R.5, Appendix I, Part I, item III, sub-item (iv). (b) Interpretation of statutes--- ---- Literal interpretation---Special provision overrides general provision. When the intention of the legislator is very clear and, when there is no doubt in gathering such an intention by a clear and unambiguous reading of the provisions of law, importing extraneous considerations or giving reasons which were not wholly germane to the points involved is not permissible under the law. Under rule 5 of the Income Tax Rules, 1962, an assessee is entitled to claim depreciation allowance in respect of buildings, machinery, plant or furniture as may be included at the percentages specified in the second column of the Table in Part I of Appendix I to the 1962 Rules on the actual cost or, as the case may be, the written down value of such assets aforesaid for the purposes of the business or profession of the assessee at any time during the previous year. Item III, sub-item (iv) of Part I of Appendix I deals with and relates to the provision for extra-shift depreciation allowance and says that an extra-shift allowance up to a maximum of an amount equal to one-half of the normal allowance shall be allowed where a concern claims such allowance on account of double shift working and establishes that it has worked double shift. While prescribing for the provision and grant of extra ¬shift depreciation allowance, item III, sub-item (iv), itself clearly stipulates that the extra-shift allowance shall not be allowed in respect of any item of machinery or plant which has been specifically excepted by inscription of the letters NESA against such an item occurring in Part I of Appendix I and also in respect of items of machinery mentioned therein. A combined reading of rule 5 with item III, sub-item (iv) in Part I of Appendix I and the second illustration contained in item III, sub-item (iv), clearly suggests that there is no ambiguity…

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