Referable question of law absent where final Tribunal findings extinguished the penalty basis and reference was refused.

No referable question of law arose from the Tribunal's order for purposes of a reference under section 256(2) of the Income-tax Act, 1961. The earlier Tribunal order granting registration and deleting the addition had already attained finality, so the foundation for penalty under section 271(1)(c) did not survive. As no live legal issue remained arising from the impugned order, the High Court declined to entertain the reference application.

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Issues: Whether any referable question of law arose from the Tribunal's order so as to justify a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The earlier Tribunal order granting registration and deleting the addition had attained finality. Once that order stood final, the basis for the penalty under section 271(1)(c) did not survive, and no live question of law remained arising from the impugned Tribunal order. In such circumstances, a reference under section 256(2) could not be entertained.

Conclusion: No referable question of law arose. The reference application was rejected.

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