Reference on depreciation rate for trucks was wrongly refused because a live question of law still arose from the Tribunal's order.

The Tribunal erred in refusing a reference where the Revenue's proposed question concerned the depreciation rate on trucks used in the assessee's business. Because the same issue had already arisen in a connected reference and had been answered against the assessee, the question remained a live question of law arising from the Tribunal's appellate order. The refusal to state the case under section 256(1) was therefore unjustified, and the Tribunal was directed to allow the reference application and refer the question to the High Court.

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Issues: Whether the Tribunal was justified in rejecting the application for reference under section 256(1) of the Income-tax Act, 1961 on the ground that no question of law arose from its appellate order.

Analysis: The assessment dispute concerned the rate of depreciation on trucks used in the assessee's business. The Tribunal had rejected the reference application by relying on its earlier view, but the same question had already been taken up in a connected reference and was answered against the assessee. In that context, the question proposed by the Revenue was a live question of law arising from the Tribunal's order, and the Tribunal's refusal to state the case was held to be erroneous.

Conclusion: The reference application ought to have been allowed and the Tribunal was directed to state the case and refer the question to the High Court.

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