( 1 ) THE Tribunal has referred the following question of law under Section 256 (1) of the I. T. Act, 1961, to this court for its opinion:"whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that Rs. 9,54,677 being the premium paid luring the accounting year corresponding to assessment year 1975-76 is an allowable expenditure ?"

( 2 ) THE assessee is a company. The assessment year is 1975-76 for which the accounting year ending is on March 31, 1975, The assessee had debited a sum of Rs. 16,15,458 to the account of premium on purchase of import entitlements for the import of raw materials. The assessee itself did not have any import licence but it purchased the same from other exporters who had been allotted such licences. The entire quota was not utilised in the year of account. Note No. 9 (a) in the balance-sheet, Schedule 'd', for the instant year in this connection was in the following terms :"premium on purchases of import entitlements for import of raw materials aggregating to Rs. 16,15,459 written off in the profit and loss account includes Rs. 9,54,677 being the value of unutilised licences in hand as at March