SHYAMAL KUMAR SEN, J.

( 1 ) THE facts found and proceedings culminating in the instant reference are, inter alia, that R. R. Bajoria, the assessee, is a member of the Indian Revenue Service. According to the terms and conditions of his service, he is liable to be transferred and posted in any city or town within the Union of India. In respect of the assessment years 1970-71, 1971-72 and 1972-73, the corresponding accounting years ending on the 31st March, 1970, 1971 and 1972, the assessee claimed that the amounts received by him as city compensatory allowance were not to be included in the total income of the assessee. The Income-tax Officer, Central Salary Circle, rejected the claim of the assessee.

( 2 ) THE assessee preferred an appeal before the Appellate Assistant Commissioner and reiterated that the amount received by him by way of city compensatory allowance was not taxable. The Appellate Assistant Commissioner, following an earlier decision of the Tribunal in Income-tax Appeal No. 3074 (Bom) of 1970-71, held that the said city compensatory allowance was not taxable and should not be included in the total income of the assessee and that having regard to the provisions of S

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