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Section 256, read with section 22, of the Income-tax Act, 1961 - Reference - Question of law - Whether, where Tribunal's decision relating to an earlier year based on same facts is not challenged by revenue, it would preclude revenue from doing so in a later year - Held, no - Whether a question of law arose from Tribunal's order holding that income from property in which assessee had life interest was assessable as income from house property and not as income from other sources - Held, yes Facts The assessee's husband had purchased a certain house property. On his death and by his will, his widow, i.e., the assessee, was given a life interest in the said property. For the assessment year 1980-81, the assessee claimed that the income from the said property should be assessed under the head 'Income from house property'. The ITO, however, assessed it under the head 'Income from other sources' on the ground that she was not the owner, having only a life interest. Following the decision of the Special Bench of the Tribunal in ITO v. J.L. Sawhney [1982] 2 ITD 207 (Delhi), the AAC accepted the assessee's appeal. The Tribunal not only confirmed the AAC's order but also refused to make a reference under section 256(1) on the ground that the revenue had not asked for such reference in the earlier years on the same facts. On reference application under section 256(2): Held It is well settled that each assessment year is separate and independent and even if the revenue does not challenge the Tribunal's decision in an earlier year, it does not preclude it from doing so later. The order of the Special Bench of the Tribunal in J.L. Sawhney's case(supra) was itself the subject-matter of a reference, and the same was pending in the High Court. In the circumstances, a question of law did arise from the Tribunal's order. The Tribunal was, consequently, directed to state a case and refer the question of law for opinion. Case Referred To ITO v. J.L. Sawhney [1982] 2 ITD 207 (Delhi) (SB). P.N. Misra and D.C. Taneja for the Applicant. P.N. Monga and T.P.S. Kang for the Respondent. ORDER Seth, J.-This application under section 256(2) of the Income-tax Act, 1961 by the Commissioner is…

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