Reference jurisdiction requires an effective hearing; if the referring assessee does not appear, the court may decline to answer.

Under section 66 reference jurisdiction, the High Court's duty to answer referred questions arose only when the case was effectively heard. Although section 66(5) was framed in mandatory terms, that obligation was not absolute in every situation. If the assessee at whose instance the reference had been made did not appear, there was in substance no party before the Court seeking a decision on the reference, so the preliminary condition for exercising the duty to answer was not satisfied. The Court could therefore decline to answer the reference.

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Issues: Whether the High Court was bound to answer a reference under the tax statute when the assessee who had caused the reference to be made did not appear at the hearing.

Analysis: The reference jurisdiction under section 66 contemplated a hearing of the case before the Court's duty to decide the questions of law arose. Although the language of section 66(5) was mandatory, the obligation to answer could not be read as absolute in every circumstance. Where the party at whose instance the reference had been made chose not to appear, there was in substance no one before the Court seeking a decision on the referred question, and the preliminary condition for the exercise of the duty to answer was not satisfied.

Conclusion: The High Court was not bound to answer the reference in the absence of the assessee who had sought it, and it properly declined to do so.

Ratio Decidendi: The statutory duty of the High Court to answer a referred question arises only upon an effective hearing of the case, and if the referring party does not appear, the Court may decline to answer the reference.

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