Veeraswami, J.- The question referred to us as to whether the assessee is entitled to depreciation at 10% turns on the interpretation of rule 8 of the Indian Income-tax Rules, 1922. On that matter, the Income-tax Officer and the Tribunal have taken one view differing from the Appellate Assistant Commissioner, who had held that the assessee would be entitled to depreciation only at 5%. The assessee is an Electric Supply Corporation in Tiruchirappalli District and is a supply undertaking. For the assessment years 1950-51 to 1953-54, 1955-56 and 1956-57 the assessee claimed 10% depreciation on house service connections and posts which was allowed by the Income-tax Officer. This the Income-tax officer did on the view that it falls under rule 8, clause 3-E, which relates to "electric supply undertakings-(i) electric plant, machinery boilers." This is the view which found acceptance with the Tribunal. But the Appellate Assistant, Commissioner felt that depreciation would be allowable only at 5% under rule 8, clause 3-C (v) which is in respect of electrical machinery-overhead cables and wires (N.E.S.A.). The Appellate Assistant Commissioner considered that" electric plant, machinery boilers" would not include overhead cables and wires. The Tribunal however was of the following opinion: "We consider that there is validity in the contention on behalf of the assessee that as it (assessee) is an electric supply undertaking, Clause ‘E’ would apply. The overhead cables and wires referred to in item (u) in Clause C would in our opinion, refer to such cables and wires as are connected with electric machinery. So long as ‘overhead cables and wires’ could also come under electric plant and/or machinery, it would be more appropriate to classify them as under ‘E’. We consider that the Tribunal took the correct view as to the scope of Clause E as including overhead cables and wires. Rule 8, which has been framed under section 10 (2) (vi) makes allowance in respect of depreciation of machinery and plant besides buildings or furniture at a certain percentage of the written down value or original cost, as the case may be, equal to one-twelth the number shown in the corresponding entry in the second column of the statement following the rule. The columns which follow the rule are classified under three heads: I-Buildings of various classifications: II-Furniture and Fittings; and III-Machinery and Plant. The columns which follow the rule are classified under three heads: I-Buildings of various classifications: II-Furniture and Fittings; and III-Machinery and Plant. Under the heading of Machinery and Plant we have a general rate provided as also special rates to be applied to the whole of the machinery, and plant used in certain specified concerns. Clause 3 makes provision for further special rates under clause (3) of this entry. This applies to special rates“to be applied to other machinery and plant. Under this category, Clause C pertains to electrical machinery and this entry mentions six items of which the fifth is” Overhead cables and wires “ Clause E, as we mentioned, relates to Electrical supply undertaking (i) Electric Plant, Machinery Boilers. The contention for the Department is that machinery in Clause E does not include overhead cables and wires and therefore only sub-clause (v) of Clause C in the column would apply. On the other hand, the assessee would say that it being an electric supply undertaking,” machinery “ in the clause is used in a wide sense so as to include overhead cables and wires. It is clear from Clause C that electric machinery in general would include overhead cables and wires. It is true in Clause E no specific mention of overhead cables or wires is made. But, in our opinion, on that account it cannot be said that electritc machinery in Clause E should be read as excluding from its scope overhead cables and wires. The use of the expression ‘‘electric plant, machinery, boilers” in Clause E appears to have been made in a comprehensive sense so as to include parts of the plant as well as electric machinery, Clause E seems to be in the nature of an exception to Clause C and where it concerns electric supply undertakings, a consolidated rate is fixed for electric plant, machinery, boilers, without reference to the various parts which go to make up the plant, machinery or boilers. It follows therefore the Tribunal was right in allowing 10 % depreciation and restoring the order of the Income-tax Officer on that matter. The Reference is answered in favour of the assessee and against the Department. Counsel’s fee Rs. 250. V.S. ----- Answered accordingly.