Interpretation of "owner" under the Income-tax Act supported a valid reference on questions of law.

Interpretation of "owner" under section 22 of the Income-tax Act was treated as a question of law because conflicting High Court views existed on the point. The Court held that the Revenue's proposed questions arose from the Tribunal's order and were suitable for reference under section 256(2). The reference request was therefore maintainable, and the Tribunal was directed to refer the two questions to the High Court for opinion.

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Issues: Whether the questions proposed by the Revenue arose as questions of law out of the Tribunal's order so as to justify a reference under section 256(2) of the Income-tax Act, 1961, and whether the matter required opinion of the High Court.

Analysis: The questions turned on the interpretation of the expression "owner" in section 22 of the Income-tax Act, 1961. The Court noticed conflicting views of different High Courts on the point and held that the questions were questions of law arising out of the Tribunal's order. It therefore found the request for reference maintainable.

Outcome: The reference application was allowed and the Tribunal was directed to refer the two questions to the High Court for opinion.

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