SRINIVASA IYENGAR, J.

( 1 ) THE Income-tax appellate Tribunal, Bangalore Bench, has referred one common question in the first two references and a separate question in the third reference, The common question is as follows :

"whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that payment of bonus in cash cannot be disallowed in part or in full applying the provisions of section 40 (a) (v) of the income-tax Act, 1961 ?"

( 2 ) THE question referred in the third case is as follows :

"whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that payment of bonus rent allowance in cash cannot be disallowed in part or in full applying the provisions of section 40a (5) of the Income-tax Act, 1961 ?"

( 3 ) THESE matters relate to the assessment for the assessment years 1970-71, 1971-72 and 1972-72. In the first two years, payments had been made by way of the opinion that this constituted perquisite and, therefore, took them into consideration in restricting the allowances to be made at 1/5th of the salary. This was subjected to an appeal by the assessee. The AAC held that such cash payment wo

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