SABYASACHI MUKHARJI, J.

( 1 ) IN this reference under Section 256 (1) of the I. T. Act, 1961, the following questions have been referred to this court:"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Additional Commissioner of Income-tax legally invoked the provisions of Section 263 (1) of the Income-tax Act, 1961 ?"

( 2 ) WHETHER, on the facts and in the circumstances of the case, and having regard to the fact that the assessee is a sterling company maintaining accounts in pound sterling, the Tribunal was right in holding that the written down value of the fixed assets should be determined on the basis of the rate of exchange with reference to the date of contract or the date of delivery or the date of payment for the assessment years 1967-68, 1968-69, 1969-70 and 1970-71 ?" 2. This reference arises out of four assessment years, viz. , assessment years 1967-68, 1968-69, 1969-70 and 1970-71. In order to appreciate the questions, it would be necessary to refer to certain facts.

( 3 ) THE assessee-company is engaged in the business of supply of electricity. The assessment years concern the previous year ended on 31st March o

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