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TMI Blog1999 (6) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... of law to this court for opinion at the instance of the Revenue : "Whether, on the facts and in the circumstances of the case, the allowance of depreciation on the assessee's machinery at 15 per cent. for the assessment years 1979-80 and 1980-81 is right in law ?" Briefly stated the material facts are as under : The assessee is a partnership firm carrying on the business of dyeing, bleachi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee and directed the Income-tax Officer to allow depreciation at a higher rate, i.e., at the rate of 15 per cent. Aggrieved by this order, the Revenue preferred an appeal to the Income-tax Appellate Tribunal. After perusing the licence of the assessee issued by the Central Excise Department, the Tribunal came to the conclusion that the assessee was processing artificial silk in its f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appendix I to the Income-tax Rules, 1962, which gives the rates at which depreciation is admissible. For machinery mentioned in sub-clause (ii) of clause III of the said Appendix, special rates are provided. Reliance is placed on item 3 in clause III(ii) B of the Appendix, which is "artificial silk manufacturing machinery and plant except wooden parts". For this type of machinery depreciation at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operties of a textile. The artificial silk cloth, printed, bleached or dyed by the assessee cannot be said to have been manufactured by it. Therefore, the machinery used for the purpose of dyeing, bleaching and printing of silk cloth obviously does not fall in the category of "artificial silk manufacturing machinery and plant except wooden parts" for which the higher rate of depreciation is admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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