COMMISSIONER OF INCOME TAX Vs. I G BELLINE

JUDGEMENT

(1.) THE following two questions are referred for our consideration :

(2.) MR . Shah, the learned Advocate for the assessee, submitted that so far as the first question is concerned, it is answered in favour of the assessee by this Court in Alessandro Constantini vs. CIT (1996) 136 CTR (Guj) 199 : (1997) 226 ITR 883 (Guj) : TC 58R.272 it is not disputed that the point is covered by a Division Bench in the above case.

(3.) ALMOST in similar circumstances, the question came up for consideration before the High Court of Kerala in CIT vs. S.R. Patton (1991) 92 CTR (Ker) 197 : (1992) 193 ITR 49 (Ker) : TC 39R.1269. There also, it was contended on behalf of the Revenue that as the Explanation was clarificatory, it should be given effect prior to date on which it was inserted w.e.f. 1st April, 1979. The said argument was, however, negatived by the High Court of Kerala, observing that the Explanation cannot be said to be mere declaratory and it cannot apply to a period anterior to 1st April, 1979.