Judgment

Bharucha, J.-Under appeal are the judgments and orders of Division Benches of the Punjab and Haryana High Court. The assessment years involved are Assessment Years 1970-71 to 1977-78. The High Court answered in the negative and in favour of the Revenue the following question :

“Whether on the facts and in the circumstances of the case, the Tribu­nal was right in law in holding that the words `corrosive chemicals’ employed in entry (ii)B(7) of Para III of Part I of Appendix I to the Income-tax Rules, 1962, contemplates not only free chemicals but also non-free chemicals of corrosive effect.”

The assessee is in appeal.

2. The assessee manufacturers, among other things, sugar. It claimed depreciation at the higher rate of 15% on machinery it used in the manufacture of sugar, which was detailed in a statement placed before the Income-tax Officer. It did so having regard to Item 3(ii)B(7) of Para III of Part I of Appendix I to the Income Tax Rules, 1962, which reads thus :

“Machinery and rate of depreciation plant coming 15%  into contact  with corrosive  chemicals.”

3. The assessee filed in s