S.R. Rajasekhara Murthy, J.

1. The question that arises for decision in this writ petition is whether dearness allowance, additional dearness allowance, city compensatory allowance and house rent allowance form part of the "salary" of the salaried employees represented by the petitioner-Union and whether the said allowances are taxable under the Income-tax Act under the head "Salaries".

2. This contention does not survive in view of the amendment to section 2(24) of the Income-tax Act, 1961 ("the Act"), by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989), inserting sub-clauses (iii)(a) and (iii)(b) after sub-clause (iii). The clauses inserted with effect from April 1, 1962, are reproduced below :

"(iii)(a) any special allowance or benefit, other than a perquisite included under sub-clause (iii), specifically granted to the assessee to meet expenses wholly, necessarily and exclusively for the performance of the duties of an office or employment of profit;

(iii)(b) any allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at a place where he ordinarily re