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Issues:
1. Whether the assessee is considered a 'Mineral Oil Concern' for depreciation purposes. 2. Whether the assessee is entitled to depreciation at the rate of 30% on well-head tanks used for storage of vegetable oils. Analysis: 1. The primary issue in this appeal is whether the assessee qualifies as a 'Mineral Oil Concern' and is eligible for depreciation at a rate of 30% on well-head tanks used for storing vegetable oils. The assessee argued that vegetable oils have a chemical composition similar to petroleum products, citing relevant court decisions and expert opinions. The assessee contended that the term 'Mineral Oil Concern' should not be limited to petroleum products extracted from the earth but should also include products with similar chemical compositions. The assessee provided extensive evidence to support this claim, including certificates of experts and chemical specifications of vegetable oil. 2. On the other hand, the Department argued that the common understanding of 'mineral oil' refers to oils extracted from below the earth, and vegetable oils meant for human consumption should not fall under this category. The Department contended that the intention of the Legislature was for machinery to come into contact with corrosive chemicals during processing to qualify for higher depreciation rates. The Department disputed the relevance of the court decisions cited by the assessee in support of their claim. 3. The Tribunal carefully considered the arguments presented by both parties. It analyzed the definitions of relevant terms such as mineral oil, vegetable, and organic chemistry from a dictionary to determine the eligibility of the assessee as a 'Mineral Oil Concern.' The Tribunal concluded that vegetable oil, being extracted from plants and containing organic elements, does not fit the definition of mineral oil, which is inorganic in nature. Therefore, the Tribunal held that the assessee could not be classified as a 'Mineral Oil Concern' for depreciation purposes. 4. The Tribunal further dismissed the alternative plea of the assessee regarding machinery coming into contact with corrosive chemicals, as the storage tanks were used solely for storage purposes without processing involved. The Tribunal emphasized that the presence of fatty acids in vegetable oil did not constitute exposure to corrosive chemicals as understood in the context of depreciation allowances. Consequently, the Tribunal ruled against the assessee's claim for higher depreciation rates and upheld the decision of the Commissioner of Income Tax under section 263. 5. In conclusion, the Tribunal dismissed the appeal, finding that the assessee did not qualify as a 'Mineral Oil Concern' and was not entitled to depreciation at a rate of 30% on well-head tanks used for storing vegetable oils. The Tribunal rejected the arguments presented by the assessee regarding the chemical composition of vegetable oil and its similarity to petroleum products, emphasizing the distinction between organic and inorganic substances in determining the eligibility for depreciation benefits.
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