SABYASACHI MUKHARJI, J.

( 1 ) THE assessee is a limited company. This reference relates to the assessment years 1965-66 and 1966-67. For these assessment years the ITO did not allow depreciation on roads within the factory compound and the compound of the residential quarters of the factory employees. Against the orders of the ITO the assessee went up in appeal before the AAC. The AAC, following the order of the Appellate Tribunal for the assessment year 1963-64, held that depreciation should be allowed on these roads at the rate applicable to first class buildings. The revenue felt aggrieved by this order. It went up in appeal before the Tribunal. The Tribunal, following its previous decision, upheld the assessee's contention and dismissed the appeal and held that these roads were entitled to depreciation at the rate applicable to first class building materials. On the aforesaid facts the following question has been referred to this court:"whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that depreciation was allowable in respect of the roads within the factory compound and the compound of the residential quarters of the factory employ

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