Referable question of law in fresh assessment: new addition after a set-aside order was the only issue arising from the Tribunal's order.

In a petition under section 256(2) of the Income-tax Act, the Delhi HC treated as referable the legal question whether, after an assessment is set aside and a fresh assessment is made, the Assessing Officer can sustain a new addition based on a source of income not included in the original assessment. The court noted that the Tribunal had not examined the Rs. 63,000 addition on merits, so only that question arose from the order. The remaining proposed questions were rejected as not arising from the Tribunal's decision. The result was a limited direction to refer one question of law, with no adjudication of the substantive tax liability.

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Issues: Whether, in a petition under section 256(2) of the Income-tax Act, 1961, the proposed question concerning deletion of an addition of Rs. 63,000 on a fresh assessment after the original assessment was set aside gave rise to a referable question of law, and whether the other proposed questions arose from the Tribunal's order.

Analysis: The Tribunal's view that, in a fresh assessment pursuant to a set-aside order, the Assessing Officer could not make a new addition based on a source of income not included in the original assessment was treated as involving a question of law. However, the Tribunal had not examined the addition of Rs. 63,000 on merits, and the remaining proposed questions were found not to arise from the order.

Conclusion: The question relating to the legality of the addition in the fresh assessment was held to be referable, while the other proposed questions were held not to arise.

Final Conclusion: The petition resulted in a limited direction for reference of one question only, with no adjudication on the substantive tax liability.

Ratio Decidendi: A legal issue arising from the Tribunal's abstract proposition of law in relation to a fresh assessment after a set-aside order is referable under section 256(2), but questions not actually arising from the Tribunal's order are not.

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