Per Vimal Gandhi, J.M. - Indian Airlines (hereinafter in short "Airlines"), a Public Undertaking, owned by the Government of India has moved these applications seeking stay of realisation of demand of tax and interest under Rule 35A of income Tax (Appellate Tribunal) Rules. 1963 until the disposal of these appeals.

2. The facts of the case, briefly stated, are that the applicant as employer is liable to deduct tax at source under section 192 of the Income-tax Act from the salary paid to its employees. It is the case of the Revenue that kit maintenance allowance, telephone expenses, free and concessional travelling allowance and certain other allowances given to the Pilots and other employees of the Government were liable to be treated as part of salary for purposes of deduction of tax at source. The Airlines, on the other hand, contends that such allowances are not taxable. Alternatively these are exempt under section 10(14) of the income-tax Act and, therefore, not part of salary. Such was the position for the past several years and amendment of section 10(14) introduced with effect from 1-4-1989 has not made any difference. Alternatively the Airlines contends that such allow