TaxTMI 
TaxTMI 
1987 (2) TMI 110
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....vant time for storage of (raw) crude vegetable oil in its well-head tanks for the State Trading Corporation. The plea was that the well-head tanks were constructed as per the specifications of I.S.I. of storages of crude vegetable oils (Palm Oil). The assessee's claim was that the vegetable oil is a mixture of hydrocarbons and glycerol and contains fatty acids to the tune of 10% and on refinement it is reduced to about 1%. In view of the fact that the vegetable oils contained corrosive chemicals as well as the rate of depreciation would be 30% and not 15%. The assessee further relied upon the fact that it is recognised as a 'Mineral Oil Concern' by the registering authority as well as by the Municipal Corporation referring to the Income-tax....
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....il concern cannot be limited to the petroleum products extracted from the earth but also all those products, which are above the earth having similar chemical compositions. This is what has been recognised by the Delhi High Court and, therefore, the claim was that, the assessee should be allowed depreciation @ 30% and not at 15% as per the information of the CIT in his order under section 263. 2. The contention of the Department, on the other hand, was that normally the meaning to a term, which is not provided for in the Income-tax Act has to be given the same as is generally understood or as is commonly used. Under the common conception the term 'mineral oil' generally includes only those, which are extracted from below the earth and 'm....
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....and, is the assessee is entitled to neither and only normal depreciation is available to the assessee. 4. The Income-tax Act, 1961 has not provided any definition of the terms, mineral, mineral oil, vegetable, etc, and we have, therefore, to look up the dictionary meaning as is generally understood. The meanings of the various terms as given in Chambers Twentieth Century Dictionary, 1983 edition are given below: &nbs....
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.... (649) Organical pertaining to, derived from, like, of the nature of, an organ (in any sense) : of an organism, organum or organisation : organised : inherent in organisation : structural : formed as if by organic process : b....
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.... oil is a mixture of hydro-carbons and glycerol and, therefore, as per the meanings given above, vegetable oil can not be termed as a mineral oil because mineral oil is an inorganic matter of all substances other than carbon compounds generally admitted a few in the shape of oxides only. It, therefore, appears that vegetable oil could not be termed as mineral oil, since the vegetable oil is extracted from out of plants which plant is organic in nature. Thus, it follows that a concern dealing in vegetable oils could not be termed as mineral oil concern, and therefore, the claim of the assessee that it is entitled to depreciation at 30% on the well-head thanks used for storage under clause III-D (7) is not tenable in law. 5.1 The certifica....