Carry-forward of losses after a belated return: no referable question of law remained in settled precedent.

A question of law was not found to arise for reference under section 256(2) on carry-forward of losses where the return had been filed after the time prescribed under section 139(1). The legal position was treated as already settled by earlier decisions, including those relied on by the Tribunal and the Supreme Court, and as supported by the Board's circular. In that settled position, no substantial or referable question of law remained for consideration, so the reference application was not maintainable on merits.

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Issues: Whether a question of law arose for reference under section 256(2) of the Income-tax Act, 1961, in relation to carry forward of losses where the return was filed beyond the time prescribed under section 139(1).

Analysis: The issue was held to be already concluded by earlier decisions, including the decisions relied upon by the Tribunal and the Supreme Court, and was also treated as supported by the Board's circular. In view of the settled legal position, no substantial or referable question of law remained for consideration.

Conclusion: No referable question of law arose and the application under section 256(2) was not maintainable on merits.

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