Bharucha, J. - (1.) The judgment and order under appeal (190 ITR 275) 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 Court 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 80-HH 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 292 (293). 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 1, 1967, which read as follows: "(iiia) profits on sale of a licence granted under the Imports (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947 (18 of 1947). (iiib) cash assistance (by whatever name called) received or receivable by any person against exports under any scheme of the Government of India."
(3.) As we shall point out, these amended provisions have no relevance to the point at issue and the High Court was in error in relying thereon and not following the earlier judgment.;