Statutory minimum notice period under income tax law cannot be shortened, and only issues arising from the appellate order are referable.

A notice under Section 22(2) of the Income-tax Act was invalid where it allowed less than thirty clear days for filing the return, because the statutory minimum time had to be given and a later extension could not cure the defect. That point therefore raised a referable question of law. A separate issue concerning the legality of the firm's constitution was not required to be referred, because it had not been raised in the appeal before the Assistant Commissioner and so did not arise out of the appellate order. The reference was confined to the validity of the notice, while the second proposed question was excluded as outside the scope of the order.

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Issues: (i) Whether the notice issued under Section 22(2) of the Income-tax Act, giving less than thirty clear days for filing the return, was invalid. (ii) Whether the proposed question regarding the legality of the constitution of the firm arose out of the appellate order so as to require a reference.

Issue (i): The notice served on 31 August 1931 allowed time only up to 26 September 1931 for filing the return. The statutory scheme under Section 22(2) required at least thirty clear days from service for furnishing the return. A notice that failed to provide the minimum period was treated as illegal, and a later extension of time could not cure the defect.

Conclusion: The notice was invalid and raised a referable question of law.

Issue (ii): Although the legality of the firm's constitution might also have involved a question of law, that point had not been raised in the appeal before the Assistant Commissioner and therefore did not arise out of the order under Section 31. A party could not compel a reference on a question that did not so arise.

Conclusion: The second question was not required to be referred.

Final Conclusion: A reference was directed on the legality of the notice under Section 22(2), while the remaining proposed question was declined as outside the scope of the appellate order.

Ratio Decidendi: A notice under Section 22(2) of the Income-tax Act must give the assessee the statutory minimum time, and only questions arising out of the appellate order can be compelled to be referred under Section 66(2).

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