Law:

Section:

Section 256 of the Income-tax Act, 1961 [Corresponding to section 66 of the Indian Income-tax Act, 1922] - High Court - Reference to - Assessment years 1961-62 to 1963-64 - Certain questions of law were sought to be referred for relevant assessment years - Reference on identical questions of law had been refused in earlier assessment years in same assessee's case up to Supreme Court - Whether High Court was not justified in accepting reference application under section 66(2) of 1922 Act - Held, yes FACTS The assessee co-operative society was manufacturer of sugar. The ITO disallowed the payments made by the assessee to the producer-members in excess of the minimum price fixed and computed the income of the assessee on that basis. The order of the ITO was set aside by the AAC and he held that the price actually paid by the assessee must be taken into consideration in computing the income of the assessee. The order of the AAC was confirmed by the Tribunal. The Tribunal rejected the applications made by the Commissioner under section 66(1) of the 1922 Act. In an application under section 66(2) of the 1922 Act the High Court called upon the Tribunal to submit three questions for its decision. On appeal to the Supreme Court: HELD Identical questions of law had come up for consideration in the assessee's assessment for the earlier assessment years and the reference application in said assessments under section 66(2) of the 1922 Act was rejected by the High Court. Also, the Special leave petitions had been rejected by the Supreme Court. The questions of law now sough to be raised were substantially the same as those raised in the previous proceedings. There was absolutely no merit in the contentions advanced by the Commissioner. The High Court was not justified in accepting the Commissioner's applications under section 66(2) of the 1922 Act. Note: The case was decided against the revenue. JUDGMENT Hegde, J.-These appeals by special leave are directed against the order made by the High Court of Bombay in an application under section 66(2) of the Indian Income-tax Act, 1922, calling upon the Tribunal to submit certain questions of law said to arise from the order of the…

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