JUDGMENT

BHAN, J.—

1.The present appeal has been directed against the final judgment and order dated 16th August, 2001 passed by the High Court of Gujarat at Ahmedabad in Income Tax Reference No. 194/86 whereby the High Court has upheld the order passed by the Tribunal to the effect that the assessee was not entitled to deduction under Section 32(1)(iv) of the Income Tax Act, 1961 (for short “the Act”).

2.The question involved in the present appeal relates to the correct interpretation of Section 32(1)(iv) of the Act and that whether in the facts and circumstances of the present case the assessee-appellant, a Chartered Accountant’s firm would be entitled to deduction under the said section.

3.The brief facts are as under:

“The assessee (hereinafter referred to as “the appellant” ) is a firm of Chartered Accountants in Ahmedabad. The Assessment relates to the Year 1984-85 for the financial year ending on 31.03.1984. During the relevant year the appellant constructed a building for the purpose of residence for its low paid employees and claimed initial depreciation @ 40% under Section 32(1)(iv) of the Act amounting to Rs.43,505/- on the actual cost of the building i.e. Rs.1,08,757/-. The