MADAN B. LOKUR, J.

( 1 ) IN this reference under Section 256 (1) of the Income Tax Act, 1961, the following question of law has been referred for our opinion:-

"whether on the facts and in the circumstances of the case the Tribunal was right in holding that the living allowance enjoyed by the Assessee is exempt under Section 10 (14) of the Income Tax Act, 1961. "

( 2 ) IN Commissioner of Income Tax v. Goslino Mario And Others, [2000] 241 ITR 312, one of the questions considered by the Supreme Court was whether the tribunal was right in law in holding that the payment taken in India in the shape of daily allowance was not exempt from tax under Section 10 (14) of the income Tax Act, 1961.

( 3 ) THE Supreme Court approved the view taken by the Gauhati High court in Commissioner of Income Tax v. Goslino Mario, [2000] ITR 314, to the effect that under Section 10 (14) of the Act any special allowance specifically granted to meet expenses wholly, necessarily and exclusively incurred for the purpose of the duties of office or employment is exempt from tax to the extent such expenses are actually incurred for that purpose. The Gauhati High Court had referred to several decisions and conclu