Broken Translucent Texture

This image →← is a texture for packed ice in a 1.7 texture pack. In the game, this texture displays properly in GUIs and when dropped as an item, but does not display in full resolution. When held in the hand and actually placed, it displays as solid white. However, when broken, the breaking particles are slightly transparent like the actual block.

How do I make the translucency of this texture display in the game in full resolution?

Note: the texture is hard to see on the post background but can be found between the arrows.