Ajit K.Sengupta, J. - (1.) This reference under Section 256(1) of the Income-tax Act, 1961, relates to the assessment years 1976-77 and 1977-78.
(2.) The common question suggested by the assessee for the assessment years 1976-77 and 1977-78 is as under : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the loss incurred by the assessee due to fluctuation in exchange rates on repayment of instalments of loan in foreign currency was capital in nature and as such, the Commissioner of Income tax was justified in invoking the provisions of Section 263 of the Income-tax Act, 1961?"
(3.) The questions suggested by the Revenue for the assessment year 1977-78 are as follows : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the Commissioner of Income tax had no jurisdiction to pass an order under Section 263 of the Income-tax Act, 1961, after an order was passed by the Commissioner of Income-tax (Appeals) relating to the same assessment ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in setting aside the order of the Commissioner of Income-tax and restoring that of the Income-tax Officer.";