Jagannatha Shetty, J.

1. The Tribunal has referred the following question under section 256(1) of the Income-tax Act, 1961 :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to get higher depreciation on canteen building ?"

2. The reference arises out of an order of reassessment made on the assessee, a company, for the assessment year 1974-75. The only fact relevant for disposal of the reference is that the assessee claimed depreciation on canteen building on the basis that it formed part of the factory. In the original assessment that claim was allowed, but it was negatived by the Income-tax Officer in reassessment proceedings. On appeal, the Commissioner of Income-tax (Appeals) agreed with the view taken by the Income-tax Officer. The assessee then appealed to the Tribunal. The Tribunal, following the decision of the Madras High Court in CIT v. Engine Valves Ltd. [1980] 126 ITR 347, allowed the appeal of the assessee. The short question that arises for consideration is, whether the canteen appertaining to the factory premise should be regarded as a part of the factory building.

3. It is n