DIPAK KUMAR SEN, J.

( 1 ) MESSRS. Mangolia Dairy Products (India), the assessee, owns and runs a cold storage plant. In the assessment years 1968-69 and 1969-70, the relevant accounting periods being the years ending on 30th June, 1967, and 30th June, 1968, the ITO allowed depreciation on the building of the said cold storage plant at only 5% on the written down value treating the same as a godown and on the electrical machinery and equipment therein at the general rate of 10% on the written down value. Being aggrieved by the said order of the ITO, the assessee preferred an appeal. The AAC held that as machinery was installed in the building for cold storage, the same should be held to be a factory and depreciation should be allowed at a special rate of 10%. He also held that, as the electrical machinery and equipment were being used for refrigeration, depreciation should be allowed at the prescribed special rate of 15%.

( 2 ) AGAINST the order of the AAC, the revenue preferred an appeal before the Tribunal and contended that a factory building must be a building where manufacturing process was carried on with the help of plant and machinery. In the instant case, it could not be

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