Jagannatha Shetty, J.—The common question referred in these two references under s. 256(1) of the I.T. Act, 1961 (shortly called "the Act"), runs as follows :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the receipts 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 facts giving rise to the question are as follows :

3. During the assessment years 1975-76 and 1976-77 the assesses-firm was engaged in the processing and export of prawns and other sea-foods. The assessee also earned some import entitlements granted by the Central Government under the Export Promotion Scheme. It is said that the person who has secured the import entitlements could either use the same or sell it to others. The assessee sold such import entitlements and earned some profits. The total income of the assessee for the years in question included the years in question included the sale proceeds of such import entitlements. The ITO allowed relief under s. 80HH of the Act in respect of the entire receipts i