( 1 ) THE following two questions of law have been referred to this Court under section 66 (1) of the Indian Income-tax Act, 1922 :-

" (1) Whether, on the facts and in the circumstances of the case, the assessment order for the assessment year 1955-56 finally concluded the position that the sum of Rs. 1,76,919. 00 directed to be carried forward to the next year, represented loss and not unabsorbed depreciation left over in the preceding year ?

(2) Whether, on the facts and in the circumstances of the case, the written down value of the two factories in question for the purposes of computation of depreciation allowance was Rs. 6,20,000. 00 ?"

( 2 ) THE statement of case relates to the assessment year 1956-57 (previsous year ending 31-12-55 ). The assessee is a Hindu undivided family. A partnersip firm was constituted in the name of Prem Narain Raj Narain by a written instrument dated 1-1-1944 between two brothers Raj Narain and Prem Narain, each acting as a Karta of his Hindu undivided family. The said partnership owned three factories, namely (1) Prag Distilled Water Ice Factory, (2) Prag Cold Storage, and (3) Prem Raj Enamel Metal Factory. The firm carried on business