Deb, J. - (1.) This is a, reference under Section 256(1) of the Income-tax Act, 1961, and the question before us is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no depreciation was admissible on drains, culverts, roads, etc. ?"
(2.) The statement of the case relates to the assessment years 1965-66 and 1966-67. The assessee is a company. It claimed depreciation on the actual, cost of construction of drains, culverts, roads, etc. The Income-tax Officer disallowed the claim on the ground that the expenditure incurred on construction of these assets did not bring into existence assets eligible for allowance of depreciation.
(3.) The assessee filed appeals. As the drains, culverts, roads, etc., were constructed outside the plinth of the bungalows and were spread over in a big area, the Appellate Assistant Commissioner did not accept the contention made on behalf of the assessee that these assets were integral parts of the bungalows. Since the word "building" has not been denned in the Act, the Appellate Assistant Commissioner, by following its ordinary meaning as stated in the Concise Oxford Dictionary, held that these drains, culverts, roads, etc., were "buildings" and directed the Income-tax Officer to allow the appropriate depreciation.;