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Section 256 of the Income-tax Act, 1961 - Reference - Question of law - Assessee a partnership firm, was assessed as a registered firm for assessment years 1977-78 to 1979-80 - Later, on information gathered during survey under section 133A, ITO reopened assessments and cancelled registration of assessee-firm on ground that it was not genuine and made protective assessments holding that income assessed was includible in another firm's income - On appeal, AAC set aside ITO's orders and directed ITO to restore original assessments - Tribunal, however, set aside AAC's orders with direction to redetermine issues involved - Whether any referable questions of law arose out of Tribunal's order - Held, yes Facts The assessee, a partnership firm, was granted registration for the assessment year 1977-78, and for the two subsequent assessment years, its registration was continued and the assessee was assessed under section 143(3) for all these years. Subsequently, on the basis of information gathered during a survey conducted under section 133A in the assessee's premises, as well as in the premises of two other firms K and C, the ITO cancelled the registration of the firm on the ground that the assessee-firm was not genuine. The ITO thereafter reopened the assessments and made protective assessments holding that the income assessed would be substantively included in the firm C's income. On appeal, the AAC set aside the ITO's orders and directed the ITO to restore the assessments originally made. On the revenue's appeal, the Tribunal set aside the AAC's orders and directed him to redetermine the issues arising in the assessee's appeals. The Tribunal further refused to make reference under section 256(1). On an application for reference under section 256(2) : Held Referable questions of law did arise out of the Tribunal's order, and accordingly, the Tribunal was directed to refer the matter for opinion. S.S. Samvatsar and Chaphekar for the Applicant. R.C. Mukati for the Respondent. ORDER Sohani, Actg. CJ.-The order in this case will also govern the disposal of Miscellaneous Civil Case Nos. 141 to 144 of 1987. 2. These are applications under section 256(2) of the Income-tax…

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