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Section 32 of the Income-tax Act, 1961 - Depreciation - Extra shift allowance - Assessment year 1986-87 - Whether assessee engaged in business of leasing was entitled to claim extra-shift allowance in respect of plant and machinery leased out - Held, yes FACTS The assessee engaged in the business of leasing claimed extra-shift allowance on the machinery leased out on the basis of the certificates issued by the lessees for number of days the machinery worked on extra shift. The Assessing Officer allowed the claim. However, the Commissioner invoked his revisional power under section 263 and held that the assessee was not entitled to claim extra-shift allowance. On appeal, the Tribunal held that the Commissioner had the jurisdiction under section. 263 to revise the order of assessment, and on the merits it held that the assessee was not entitled to extra-shift allowance and the order of assessment was erroneous and prejudicial to the interests of the revenue. On reference: HELD Following the decision of the Supreme Court in CIT v. Maharashtra Apex Corpn. Ltd. [2002] 254 ITR 98 it was to the held that the Tribunal was not correct in holding that the assessee was not entitled to claim extra-shift allowance on the plant and machinery leased out. -Decision was in favour of assessee. CASES REFERRED TO CIT v. Maharashtra Apex Corpn. Ltd. [2002] 254 ITR 98 (SC) and CIT v. Maharashtra Apex Corpn. Ltd. [1998] 234 ITR 484(Kar.). P.P.S. Janarthana Raja for the Appellant. K. Subramaniam for the Respondent. JUDGMENT N.V. Balasubramanian J.- The Income-tax Appellate Tribunal has referred the following question of law: "2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the appellant was not entitled for the claim for extra-shift allowance on plant and machinery leased out when it is eligible for normal depreciation?" The matter pertains to the assessment year 1986-87. The assessee in this case engaged in the business of leasing and it claimed extra-shift allowance on the machinery leased out on the basis of the certificates issued by the lessees for the number of days the machinery worked on extra shift. The Assessing Officer, during…

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