Tribunal reference under income tax law required where an identical question had already been referred in an earlier year.

Where a similar question of law had already been referred for an earlier assessment year, the Tribunal was required to refer the proposed question under section 256(2) of the Income-tax Act, 1961. The Revenue's request concerned whether commission paid to agents and turnover discount paid to distributors fell for disallowance under section 37(3A). The High Court noted that the earlier reference for the assessee on the same issue had already been made and that the present refusal appeared to be a mistake. The Tribunal was therefore directed to refer the question of law along with the statement of case.

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Issues: Whether the Tribunal was required to refer the proposed question of law under section 256(2) of the Income-tax Act, 1961, in view of the similar question already referred for an earlier assessment year.

Analysis: The Revenue sought a reference of the question concerning inclusion of commission paid to agents and turnover discount paid to distributors for disallowance under section 37(3A) of the Income-tax Act, 1961. It was noticed that for the assessee itself, a similar question had already been referred for the earlier assessment year, and the refusal to refer in the present year appeared to have been made by mistake.

Conclusion: The Tribunal was directed to refer the question of law along with the statement of case.

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