(1.) FOLLOWING the direction of this court on an application made by the Revenue under Section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Patna Bench, Patna, referred the following question of law for consideration by this court :
(2.) THE facts of this case are brief and without any controversy. In the return for the assessment year 1978-79, the assessee, in addition to his salary, also showed a sum of Rs. 23,040 received by him from the Fertilizer Corporation of India Limited, Sindri (hereinafter referred to as "the F. C. I."), as living allowance at the rate of Rs. 120 per day. In respect of this amount he claimed exemption in terms of Section 10(14) of the Act. THE assessee's claim in this regard was turned down by the Income-tax Officer. THE assessment order was confirmed in appeal before the appellate authority. THE Income-tax Appellate Tribunal, however, upheld the assessee's claim for exemption, set aside the orders of the Income-tax Officer and the appellate authority and directed deletion of the amount of Rs. 23,040 from the assessee's taxable income.
(3.) MR. Vishwa Mohan, learned counsel for the assessee, on the other hand, argued that it was in the nature of a special allowance for working in India away from his home country and was accordingly fully covered by Section 10(14) of the Act.