AJIT K. SENGUPTA, J.

( 1 ) THIS reference under Section 256 (2) of the Income-tax Act, 1961, relates to the assessment year 1980-81, the previous year ending December 31, 1979. The assessee is a limited company deriving income from business in the manufacture of tyres, tubes, etc.

( 2 ) THE assessee exported goods to several parties in Turkey between November, 1976, and September, 1977, amounting to Rs. 2,72, 19,587. The parties in Turkey were to pay for the goods in U. S. dollars and deposited an equivalent amount in lira in the Central Bank of Turkey. The Central Bank of Turkey, however, did not transfer the amount deposited by the purchasers in Turkey to India. In view of the extremely critical foreign exchange reserve position, the Government of Turkey imposed a ban on all remittances out of Turkey. As a result, the amount deposited in the Central Bank of Turkey remained there. The normal period of 90 days within which the sale proceeds should have been realised expired without any receipt by the assessee on account of the aforesaid ban. The assessee entered into correspondence with the Government of Turkey through the Indian Embassy there. In the meantime, the Turkish curren

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