D.M. Chandrashekhar, J.

1. AT the instance of the Commissioner of Income-tax, the Income-tax Appellate Tribunal (Delhi Bench "C") (shortly referred to as the Tribunal) has referred to this court the following question of law :

"Whether, on the facts and in the circumstances of the case, depreciation to be allowed for the assessment year 1963-64 in respect of the assets acquired by the assessee before April 1, 1961, should be determined by reference to the written down value as determined in accordance with the provisions of the Act of 1922, or by reference to the written down value as determined in accordance with Sections 43(1) and 43(6) of the Act of 1961 ?"

2. THE material facts are these: The respondent-assessee is a limited company which was running an electricity supply undertaking at Saharanpur. The reference relates to the assessment year 1963-64, the corresponding previous year being the year ending on March 31, 1963. The controversy relates to the depreciation on the service lines installed by the assessee to give electrical connection to consumers of -electricity up to March 31, 1961.

The assessee used to recover from consumers the whole or a part of the expenditu