Reference of questions of law limited to issues arising from the Tribunal's order and record; unraised question declined.

Under section 26(3) of the Gift-tax Act, a reference can be directed only on questions of law arising from the Tribunal's order or otherwise shown to arise from the record. The High Court held that questions Nos. 1, 2 and 4 to 6 satisfied that test because they arose from the Tribunal's decision and required consideration, but question No. 3 was not referable since it had not been raised before the Tribunal and was not dealt with in its order. The request for reference was therefore accepted in part, with a reference directed only on the referable questions.

---

---

Issues: Whether the Tribunal was bound to refer all six proposed questions of law, and whether a question not raised before the Tribunal and not considered by it could still be directed to be referred.

Analysis: The petition sought a direction under section 26(3) of the Gift-tax Act, 1958, requiring the Tribunal to state the case on six questions. The Court found that questions Nos. 1, 2, and 4 to 6 did arise from the Tribunal's order and required consideration. Question No. 3, however, had not been raised as a ground before the Tribunal, there was no discussion of it in the Tribunal's order, and it could not therefore be treated as arising from that order.

Conclusion: The request for reference was accepted in part, and the Tribunal was directed to refer questions Nos. 1, 2, and 4 to 6; question No. 3 was declined.

Ratio Decidendi: Only those questions of law that arise from the Tribunal's order and were actually considered, or are shown to arise from the record, can be directed to be referred under section 26(3); a question not raised before or decided by the Tribunal is not referable.

---