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Section 256 of the Income-tax Act, 1961, read with rule 191 of the Income-tax Rules, 1962 – High Court – Reference to – Whether application under section 256(2) cannot be dismissed by reason of non-production of certificate made mention of in rule 191(2) – Held, yes FACTS On application by the assessee under section 256(2), the High Court directed the Tribunal to send up reference to the High Court. On the question as to whether and if so how far a chartered accountant is entitled to bind his client by statements made in the course of assessment proceedings. The revenue brought to the notice of the High Court that no certificate as provided by the rule 191 had accompanied the application made under section 256(2). HELD In the face of the section 256 which does not choose to limit the substantive right of making of an application by any condition such as production of a certificate from the Tribunal, it appears a little doubtful how far the purpose can be effectively achieved by a rule of the type of rule 191(2). T he objection that the certificate did not accompany the application, had been taken only now after the judgment was dictated yesterday, in the absence of the counsel for the revenue, at whose instance the matter was posted "for being spoken to". Besides, no penalty for non-compliance is provided either, by the rule; much the less is there any such provision in the section itself. In the circumstances, there was no defect which would render the application liable to be dismissed by reason of the non-production of the certificate made mention of in rule 191(2). Note : The decision is against the revenue. JUDGMENT Gopalan Nambiyar, CJ.—This is an application under s. 256(2) of the I.T. Act to compel reference of certain questions of law to this court for determination and opinion. The questions of law sought to be referred are: "1.Whether, on the facts and in the circumstances of the case, the Tribunal was justified in their finding that under the specific written power given by the appellant to the chartered accountant representative the latter was legally competent to make an agreement with the ITO so as to bind the appellant? 2.Whether, on the facts…

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