1. N.D. OJHA, C. J.--The Tribunal, Delhi Bench "A", New Delhi, has referred the following question to this Court for its opinion under section 256(1) of the Income-tax Act, 1961 ("the Act"): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the assessee's claim of depreciation at the rate of 15 percent. On the machinery in question?"
2. The assessee, Gwalior Sugar Co. Ltd., Dabra, claimed depreciation at the higher rate of 15 percent.
3. On machinery on the ground that in the process of preparation of sugar, it came into contact with corrosive chemicals. This claim has been repelled by the Tribunal, but, on an application made in this behalf --the assessee, the Tribunal has referred the aforesaid question to this Court for its opinion. In repelling the claim made by the assessee, the Tribunal placed reliance on a decision of the Punjab and Haryana High Court in C.I.T. v. Saraswati Industrial Syndicate Ltd. (1982) 136 ITR 758.
4. It has been held in the case of Saraswati Industrial Syndicate Ltd. That the machinery did not come into contact With corrosive chemicals as contemplated by the relevant entry in the Act for showing depreciationat the rate of 15 percent. It has been urged by learned covaso4 for the assessee that the Tribunal has not taken into consideration the circumstance that iron, lead and copper persist in the composition of molasses. Reliance has been placed in support of the submission on a book titled `Cane Sugar Handbook' authored by Meade Chem. In our opinion, even if it is accepted for the sake of argument that iron, lead and copper persist in the composition of molasses, it cannot be said that the machinery comes into contact with corrosive chemicals for the simple reason that it is not possible to take the view that iron, lead and copper constitute corrosive chemicals. In this view of the matter, we agree with the view taken in Saraswati Industrial Syndicate Ltd, s case (1982)
5. 136 ITR 758 (P & H), and our answer to the question referred to us is that, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the assessee's claim of depreciation at the rate of 15 percent. On the machinery in question. There shall be no order as to costs.