Judgment

Bharucha, J.-The judgment and order under appeal (190 ITR 274)1 was pronounced by a Division Bench of the Karnataka High Court on a refer­ence made by the assessee, and the Revenue is in appeal. The High Cout answered in favour of the assessee the following question:

“Whether, on the fact and circumstances of the case, the Tribunal was justified in law in holding that the receipt from the sale of import entitlements could not be included in the income of the assessee for the purpose of computing the relief under Section 80HH of the Income-tax Act, 1961?”

2. The identical question had arisen in respect of the same assessee for an earlier year and the High Court had then answered the question against the assessee (150 ITR 293)2. The assessee had not carried the matter further. Ordinarily, therefore, the Division Bench hearing the assessee’s appeal for the later assessment year would have been bound by the earlier decision. However, it chose not to do so relying upon the fact that Section 28 of the Income Tax Act, 1961 had been amended in the meanwhile by the Finance Act, 1990 with effect from 1st April, 1962 by insertion of clause (iiia) and clause (iiib) with effect from April