Right to Tribunal reference: an affected partner may require a reference of a question of law, and the Tribunal can refer it.

Whether a non-appealing partner can require the Appellate Tribunal to refer a question of law to the High Court turned on the statutory concept of assessee and standing: the court held that the definition of assessee includes a person in respect of whom proceedings have been taken or who is liable, so a partner whose liability is affected by an order under the Act may be aggrieved and entitled to seek a reference under section 66(1). The Tribunal was therefore competent to make the reference at the instance of the non-appealing partner; the petition challenging that reference was dismissed. Procedure for such applications must name the partner as applicant, Commissioner as respondent and include original appellant and other interested parties.

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Issues: Whether the Appellate Tribunal could, under section 66(1) of the Income-tax Act, be required to refer to the High Court a question of law at the instance of a person who was not the appellant before the Tribunal (specifically, a partner who had not preferred the appeal).

Analysis: Section 2(2) defines "assessee" as a person by whom income-tax or any other sum is payable or in respect of whom any proceeding under the Act has been taken for assessment; therefore the right to apply for a reference under section 66(1) is not confined to the party who preferred the appeal. A person whose liability is affected by an order under sub-section (4) of section 33 may be aggrieved and entitled to require the Tribunal to refer a question of law to the High Court. Where a Tribunal reference is sought by such a person who was not the appellant, proper procedure is to frame the application with that person as applicant, the Commissioner as respondent, the original appellant as an additional respondent, and other interested partners or the firm as necessary parties.

Conclusion: The Tribunal was competent to make the reference at the instance of the non-appealing partner; the petition challenging that reference is dismissed.

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