Dipak Kumar Sen, J. - (1.) In this reference under Section 66(1) of the Indian Income-tax Act, 1922, the following questions have been referred: "(1) Whether, on the facts and circumstances of this case, the assessee was entitled to full depreciation allowance under Section 10(2)(vi) of the Indian Income-tax Act, 1922, read with Rule 8 of the Rules thereto for the assessment years 1958-59 and 1959-60 ? (2) Whether, on the facts and in the circumstances of this case, the sum of Rs. 1.65,424 was properly treated as revenue expenditure and allowed accordingly ?"
(2.) On question No. 1, learned standing counsel appearing on behalf of the assessee did not seriously contest the position that in view of Rule 8 of the Indian Income-tax Rules, 1922, as construed by this court in the case of Anantapur Textiles Lid. v. Commissioner of Income-tax , it could not be disputed that the assessee will not be entitled to full depreciation as claimed. In the premises, the first question is answered in the negative and in favour of the revenue. We make it clear that the assessee will be entitled to depreciation for the relevant period as laid down in the Rules and not for the entire period.
(3.) So far as the second question is concerned the relevant facts as appearing from the statement of the case and the annexures thereto can briefly be stated as follows : In the assessment year 1959-60, the previous year ending on the 31st May, 1958, the assessee spent a sum of Rs. 1,65,424 for the construction of dams. In the year in question there was a disaster in the mines. The mines department directed the assessee to carry out protective works for the prevention of recurrence of such disaster and the assessee had to carry out the same.;