Refund denial under section 141A raised a referable question of law despite final appellate proceedings, requiring Tribunal reference.

Section 141A refund denial was treated as a referable question of law where the assessee relied on supporting judicial authority and the facts indicated that the provision applied. The High Court noted that the application under section 256(2) raised whether the issue could still be referred despite the earlier appellate order having attained finality. On that basis, it held that the Tribunal should not have refused reference and directed it to submit a statement of case on the questions raised.

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Issues: Whether the Tribunal was justified in refusing to refer the question relating to denial of refund under section 141A of the Income-tax Act, 1961, on the ground that the appellate order had become final and no referable question of law arose.

Analysis: The application was under section 256(2) of the Income-tax Act, 1961. The Court found that the provisions of section 141A were attracted on the facts and that the assessee had relied on judicial authority supporting its claim. In these circumstances, the question whether denial of refund under section 141A could be raised despite the earlier appellate order involved a referable question of law requiring consideration by the Tribunal.

Conclusion: The Tribunal was not justified in refusing reference, and it was directed to submit a statement of case on the questions stated in the application.

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