Mandatory reference of questions of law cannot be refused merely because the issues seem settled or not debatable.

Where a taxing statute requires questions of law arising from an appellate order to be referred, the appellate authority cannot refuse a reference on the ground that the issues are already settled or supposedly not debatable. The authority must consider all questions of law arising from its order, even if not precisely framed by the applicant, and the existing view does not prevent the High Court from examining its correctness. The separate refund contention was not entertained because it had not been raised before the tax authorities or the Board and was unsupported on the record. The refusal to state the case was therefore incorrect, and reference of the legal questions was directed.

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Issues: Whether the Board of Revenue was bound to state a case and refer the questions of law arising from its order; whether the objection that the questions were already settled or not debatable could justify refusal to make a reference; and whether the additional refund issue could be canvassed on the present application.

Analysis: The statutory scheme under Section 23 required the Board of Revenue to refer questions of law arising out of its order. The power to determine whether a question was open to debate did not rest with the Board so as to defeat the reference, and the authorities were bound to follow the existing decision only until the High Court examined the correctness of that view. The Board was also obliged to consider questions of law arising out of its order, whether or not precisely framed by the applicant, and no limitation barred consideration of such questions in the manner suggested. The refund contention was not entertained because it had not been raised before the tax authorities or the Board and was not supported on the present record.

Conclusion: The refusal to state the case was held incorrect, and the Tribunal was directed to state the case and refer the questions of law arising from its order.

Final Conclusion: The application succeeded and the assessee obtained an directing reference of the legal questions for decision by the High Court.

Ratio Decidendi: Where the taxing statute casts a duty on the appellate authority to refer questions of law arising from its order, the authority cannot refuse reference on the ground that the questions are supposedly settled or not debatable, and it must consider all such questions arising from the order.

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