Premature tax reference application dismissed where remanded issues and pending inquiry made final consideration unavailable.

An application under section 66(3) of the Income-tax Act, 1922 was held premature because the matter had already been remanded and the questions raised were still under inquiry before final orders by the Commissioner. The court noted that the Assistant Commissioner had to state facts and give reasons for his findings, but that requirement did not make the reference maintainable at that stage. It also recorded that the service of notice under section 23(2) was unclear on the record and declined to express any view on the nature of the questions sent back for inquiry. The application was dismissed.

---

---

Issues: Whether the application under section 66(3) of the Income-tax Act, 1922 was premature and liable to be dismissed.

Analysis: The application was held to be premature because the matter had already been remanded and questions raised in the reference were still to be enquired into before final orders were passed by the Commissioner. The order also emphasised that the Assistant Commissioner was required to state the facts and give reasons for his findings, but this did not convert the application into a maintainable reference at that stage. The Court further observed that it was not clear on the record whether notice under section 23(2) had been served, and it refrained from expressing any opinion on the nature of the questions sent back for inquiry.

Conclusion: The application under section 66(3) of the Income-tax Act, 1922 was premature and was dismissed.

---