Mahendra, J.—On a reference made by one of us (Puttaswamy J.), these cases were posted before us for hearing.

2. As common questions of law arise for consideration in all these cases, they are heard together and disposed of by this common order.

3. The petitioners in some of these cases are the employees of the State Bank of Hyderabad working in several branches of the said bank in Gulbarga District and the petitioners in the other cases are the employees of the Bharat Electronics Limited, Bangalore.

4. All the petitioners, who draw salaries and allowances of varying amounts, in terms of their employment, are assessed under the I.T. Act, 1961 (hereinafter referred to as "the Act"). The taxes payable by the petitioners are deducted at source from their salary as provided in s. 192 of the Act. All the employees of the State Bank of Hyderabad and Bharat Electronics Limited, Bangalore, including the petitioners are paid monthly House Rent Allowance (HRA), and a certain amount as encashment of leave once a year or once in two years as the case may be, in terms of their conditions of service. All the petitioners are in occupation of their own houses. In computing the total income