JUDGMENT - Dr. B.P. SARAF, J.:---By this reference under section 256(1) of the Income-tax Act, 1961, at the instance of the revenue, the Income-tax Appellate Tribunal has referred the following question of law to this Court for opinion :

"Whether, on the facts and in the circumstances of the case, the sum of Rs. 40,264/- received by the assessee from M/s. Mahindra Mahindra Ltd. under the superannuation scheme on his premature retirement is not liable to be assessed or charged to tax?"

2.This reference pertains to the assessment year 1976-77, the relevant previous year being the year ended 30th March, 1976. During this year, the assessee, who is an individual, received a sum of Rs. 44,743/- from his employer M/s. Mahindra Mahindra under the superannuation scheme on his premature retirement from service with effect from December, 1975, out of which a sum of Rs. 6,358.41 was deducted as tax. Before the Income-tax Officer, the assessee claimed that this amount was not taxable as his income. The Income-tax Officer did not accept this claim of the assessee as he was of the opinion that the assessee having retired prematurely, the contributions made prior to 1961 only were exempted und

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