Judgment

DAS GUPTA, J. : The assesses is the appellant in each of these four appeals arising out of four references under S. 66 (1) of the Indian Income-tax Act to the High Court of Bombay. In two of these appeals (C. A. Nos. 599 and 600 of 1982) the assessee who has filed the appeals is the Mahalaxmi Mills Ltd, in the other two (C. A. Nos. 601 and 602 of 1962) the Master Silk Mills Ltd., is the appellant-assessee. Appeals Nos. 599 and 601 are in respect of the assessment year 1949-50, the other two are in respect of assessment year 1951-52. The controversy in all these cases is as regards the computation of written down value in calculating depreciating allowance.

2. Both the assessees had from before 1949-50 been carrying on business in Bhavnagar which was formerly an Indian State. In 1948 Bhavnagar along with other Indian States of Kathiawar formed themselves into a union by the name of United States of Kathiawar. Later the name Kathiawar was changed to Saurashtra. On March 16, 1949 the Raj Pramukh of this newly-formed State instituted the Saurashtra Income-tax Ordinance 1949. This Ordinance was in force for one year only - the assessment year 1949-50. In assessing the profits of