1987 (10) TMI 3 - HC - Income Tax

Summary

The High Court of Madhya Pradesh upheld the Tribunal's decision to reject the assessee's claim of depreciation at a higher rate of 15 per cent. on machinery used in sugar production. The court agreed with the Tribunal's reasoning that the machinery did not come into contact with corrosive chemicals as required by the relevant tax law for the higher depreciation rate. The court cited a previous case and found that the presence of iron, lead, and copper in molasses did not qualify as corrosive chemicals. The court ruled in favor of the Tribunal, stating that the assessee's claim was rightly rejected.