Special depreciation on machinery exposed to corrosive chemicals upheld; Tribunal's factual finding raised no independent question of law.

Special depreciation at 15% was upheld where plant and machinery came into contact with corrosive chemicals, making the allowance not wholly unwarranted. The Tribunal's view rested on appreciation of facts, and its conclusion did not give rise to any independent question of law. On that footing, the challenge to the order under section 263 failed, and the issue was answered in favour of the assessee and against the Revenue.

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Issues: Whether the Tribunal was right in cancelling the order passed under section 263 of the Income-tax Act on the ground that the assessment order allowing depreciation at 15 per cent was erroneous and prejudicial to the interests of the Revenue.

Analysis: The claim for special depreciation was upheld on the footing that the plant and machinery came into contact with corrosive chemicals, and the allowance of depreciation at 15 per cent was not wholly unwarranted. The finding depended on appreciation of facts, and no independent question of law arose from the Tribunal's conclusion.

Conclusion: The question was answered in favour of the assessee and against the Revenue.

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