SABYASACHI MUKHARJI, J.

( 1 ) THIS reference under Section 256 (1) of the I. T. Act, 1961, relates to the assessment year 1967-68. Only one question has been referred to this court for answer. The question is as follows :" Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 13,02,495 represented revenue loss accruing to the assessee during the previous year relevant to the assessment year 1967-68 in consequence of devaluation of the rupee on June 6, 1966?"

( 2 ) THE assessee is a non-resident company having its head office at Belgrade, Yugoslavia, and the relevant assessment year is 1967-68 for which the previous year ended on 31st December, 1966. In the said assessment, the assessee had claimed devaluation loss of Rs. 14,55,970 representing depreciation in the value of the rupee in terms of Yugoslavia dinars on the 6th June, 1966, The amount was calculated with reference to the credit balance of the head office with the Indian branch and represented the difference between dinars and Indian rupee on conversion as on the 5th May, 1966, and the 6th June, 1966. In the assessment, this deduction was considered by the ITO, w

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