P.K. Tare, C.J.

In this reference u/s 256(1) of the Income Tax Act, 1961, at the instance of the petitioner-assessee, the Income Tax Appellate Tribunal has referred the following questions for our opinion :

"1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the compensatory allowance received by the assessee under the provisions of Article 222(2) of the Constitution of India was liable to be included in his total income under the head 'Salaries' for the purpose of Income Tax assessment ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Additional Commissioner had rightly held that the order passed by the Income Tax Officer u/s 142(1) of the Income Tax Act without including such compensatory allowance in the total income of the assessee was erroneous in so far as it is prejudicial to the interests of the revenue ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was not entitled to the deduction of the house rent of Rs. 3,720 paid by him at Jabalpur, from such compensator