Law: Income Tax Act, 1961

Section: 256,263

(a) Income-tax---Reference---Scope of power of High Court---Power to call for supplementary statement of case---Indian Income Tax Act, 1961, Ss.256 & 258. ----Reference---Revision---Mineral oil---Notification---Notification issued by Central Government granting exemption from surtax for foreign company with whom Central Government had entered into agreement for prospecting for mineral oil---Exemption from surtax granted by Assessing Officer--¬C.I.T. expected to be aware of notification---Tribunal justified in holding that order of revision to withdraw exemption was not valid---No question of law arose---Indian Income Tax Act, 1961, Ss.256 & 263. (c) Income-tax---Reference---Revision---Mineral oil---Agreement between Central Government and foreign company---Notice under S.263 not referring to single or multiple point grossing up of income---Tribunal justified in holding that single stage grossing up had to be adopted---No question of law arose--¬Indian Income Tax Act, 1961, Ss.256 & 263. A point of law on which a reference ought to be made or may be required to be made, must properly arise out of the order of the Tribunal within the meaning of section 256(1) of the Income Tax Act, 1961. Whether a question of law arises on an order of the Tribunal would depend upon the facts and circumstances of a given case but as a rule in order that such a point should arise, it must have been pleaded before the Tribunal and it must have been properly before it, so that the Tribunal should have been-in a position to apply its mind to the question sought to be raised. It follows that where a point of law has not been raised before the Tribunal at the proper stage and in a proper manner or it was never taken up, at all, before any of the income¬ tax authorities, so that the necessary materials for founding a conclusion thereon are absent or exist only in an incomplete form, such a question cannot be held to arise out of the order of the Tribunal within the meaning of section 256(1), and to such a question the provisions of section 256(2) can hardly be made applicable so that the High Court would have no authority or jurisdiction to requisition a reference on a point…

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