Hegde, J.—At the instance of the assessee, the Income Tax Appellate Tribunal (Hyderabad Bench) has referred to this court under section 66(1) of the Indian Income Tax Act, 1922, the question "whether on the facts and in the circumstances of the case, the sum of Rs. 1,92,136 is liable to be taxed ?"

2. The facts of this case concisely put are as follows : The assessee is a private limited liability company carrying on business in assembling and overhauling different types of aircraft. The dispute in this case relates to its assessment in the assessment year 1950-51, the relevant accounting period being the year ended March 31, 1950. In the course of its business the assessee undertook to repair and overhaul at its Bangalore factory the aircrafts belonging to Messrs. Saudi Arabian Airlines and Messrs. Arabian American Oil Co. In respect of those contracts, the said two clients of the assessee had to pay their dues in dollars to the company's bank in America.

3. On September 19, 1949, the Indian rupee was devalued and, at that time, the assessee held with its bankers in the U. S. A. a sum of $1,98,202'75. These dollars were originally valued in the books of the assessee at the o