Factory roadways can qualify as buildings for depreciation when permanently integrated with the factory complex.

Factory roadways laid within premises and used to move raw materials, finished goods and workers were treated as part of the factory building complex for depreciation purposes. The provision was construed in its commercial and contextual setting, and the term "building" was read broadly rather than as a structure limited to walls and a roof. Because the roadways were permanent, concreted adjuncts linked to the factory buildings and necessary for business operations, they fell within the allowance provision and depreciation was held allowable.

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Issues: Whether roadways laid inside the factory premises and used for transporting raw materials, finished products and workers were "buildings" within section 10(2)(vi) of the Indian Income-tax Act, 1922 so as to qualify for depreciation.

Analysis: The depreciation provision was construed in its commercial and contextual setting. The roadways were laid out on the factory land with concrete materials, linked the various factory buildings, were necessary for the conduct of the business, and were permanent adjuncts of the factory complex. The expression "building" was held not to be confined to a structure having walls and a roof, and the classification of buildings in the rules did not prevent such roadways from falling within the allowance provision.

Conclusion: The roadways were treated as part of the factory buildings and depreciation was rightly allowable to the assessee.

Ratio Decidendi: For depreciation purposes, the expression "building" in the relevant income-tax provision is to be construed broadly enough to include permanent factory adjuncts appurtenant to and functionally integrated with the building complex.

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