Law: Income Tax Act, 1922

Section: 66(1),(2),(4)

Income-tax Act (XI of 1922)---S. 66(1), (2), (4)--Reference--Power of High Court to refer case back to Appellate Tribunal to make additions or alterations--Scope of--No right to direct finding of fresh facts.The only question of law which the assessee or the Commissioner can require the Appellate Tribunal to refer to the High Court under section 66(1) of the Income-tax Act is "any question of law arising out of the order of the Tribunal"; the Tribunal is not bound to refer a question, of law which does not arise out of its order.It is the facts admitted or found by the Appellate Tribunal that would form the basis on which the statement of case would be drawn and reference of the question of law made by the Tribunal to the High Court. Facts which are not found in the order of the Tribunal or in the record before it cannot be the foundation for the raising of any question of law either in the abstract or otherwise.The scope and subject-matter of the reference under section 66(2) is co¬extensive with that of the reference under section 66(1) of the Income-tax Act and the High Court has no power or jurisdiction under section 66(2) to travel beyond the ambit of section 66(1).Section 66(4) does not enable the High Court to raise a new question of law which does not arise out of the Tribunal's order and direct the Tribunal to investigate new or further facts necessary to determine this new question which had not been referred to it under section 66(1) or section 66(2) and direct the Tribunal to submit a supplementary statement of case.Even though the terms of section 66(4) are wide enough to comprise "such additions thereto or alterations therein as the Court' may direct in that behalf', the scope of such directions has to be read in the context of and in conjunction with the provisions of section 66(1) and (2), and under the guise of a direction under section 66(4) the High Court cannot refer the case back to the Tribunal to find new facts or embark upon a new line -of enquiry which would enable either the assessee or the Commissioner to make out a case which had never been made during the course of the proceedings before the Income-tax authorities or the Tribunal so…