Income-tax reference need not be answered where the referring assessee disclaims interest in pursuing the question.

A High Court is not compelled to answer an income-tax reference when the assessee at whose instance it was made states that it no longer seeks an answer. Although a reference once made cannot be withdrawn as of right, the court may decline to proceed where the referring party fails to pursue the matter or expressly disclaims interest in having the question decided. On that basis, the reference was left unanswered and disposed of without any answer on the referred question.

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Issues: Whether the High Court was bound to answer an income-tax reference when the assessee, at whose instance the reference was made, stated that it was not interested in obtaining an answer.

Analysis: The Court accepted that, although a reference once made cannot be withdrawn as of right, the High Court is not compelled to answer the reference where the party at whose instance it was made fails to pursue it or expressly disclines to have the question answered. On that basis, the Court declined to proceed with an answer to the referred question.

Conclusion: The Court was not bound to answer the reference and declined to answer it.

Final Conclusion: The income-tax references were left unanswered and stood disposed of without any answer on the referred question.

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