DIPAK KUMAR SEN, J.

( 1 ) M/s. Martin and Harris (P.) Ltd. , Calcutta, the assessee, was assessed to income-tax in the assessment year 1968-69, the corresponding previous year ending on December 31, 1967. During the said assessment year, the British pound sterling was devalued vis-a-vis the Indian rupee. The assessee at the relevant time had been manufacturing goods under licence from M/s. Organon Laboratories Ltd. of London, who were supplying to the assessee on credit major part of the materials needed for such manufacture. The price of such materials was, however, payable by the assessee in pound sterling.

( 2 ) THE ITO found that as a result of the devaluation, the liability of the assessee under the outstanding bills of the foreign supplier was reduced by Rs. 2,86,101 and added the said amount to the income of the assessee for being brought to tax.

( 3 ) BEING aggrieved, the assessee preferred an appeal before the AAC who sustained the addition.

( 4 ) THERE was a further appeal by the assessee to the Income-tax Appellate Tribunal. It was contended on behalf of the assessee before the Tribunal, inter alia, that : (a) any profit accruing or any loss resulting from devaluatio

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