Mehar Singh, J.

1. This is a reference made by the Income-tax Appellate Tribunal of New Delhi under Section 66(1) of the Indian Income-tax Act, 1922 (Act II of 1922), hereafter to be referred as "the Act". The question referred reads :

" Whether the assessee was entitled to the concession contained in Section 15C of the Indian Income-tax Act, 1922, in respect of Ashok Dyeing and Printing Works ? "

2. The assessee is firm Phagoo Mal Sant Ram of Amritsar which had been carrying on business in its name. It opened a new branch under the style of Ashok Dyeing and Printing Works, opening its new industrial undertaking on October 22, 1957. For this undertaking it constructed a factory building at Rs. 47,221 and installed in it machinery of the value of Rs. 1,47,358. Out of the total value of the machinery, a sum of Rs. 1,05,376 represented purchase of old machinery from several parties, and the remaining sum of Rs. 41,982 was the price of the new machinery. So in regard to this new undertaking the assessee (a) set up a new factory building costing Rs. 47,221, and (b) purchased (i) new machinery of the value of Rs. 41,982, and (ii) old machinery of the value of Rs. 1,05,376. In the