Y. V. ANJANEYULU, J.

( 1 ) THIS reference under section of the Income-tax Act, 1961, made by the Income-tax Appellate Tribunal at the instance of the assessee relates to the assessment years 1963-64 to 1971-72 (both the years inclusive ). Two questions are referred by the Tribunal for the consideration of this court and they are :"1. Whether, on the facts and in the circumstances of the case, investment in securities made by the assessee in pursuance of section 24 of the Banking Regulation Act being a statutory obligation can be treated as a transaction in the course of carrying on of trade ? 2. Whether, on the facts and in the circumstances of the case, the assessee is precluded from agitating the claims relating to gratuity, pension fund and staff welfare expenses for all the years and the difference arising out of the devaluation of the rupee to the extent of Rs. 11,04,484 for the assessment year 1967-68 and Rs. 57,530 for the assessment year 1968-69 in the reassessment proceedings under section 147 especially when in the assessments relating to the subsequent assessment years the said claims were allowed ?"

( 2 ) SO far as the first question is concerned, it is common ground tha

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