Reference to High Court is unavailable against best judgment assessments; revision, not compulsory reference, is the proper remedy.

The assessee's right to demand a reference was confined to questions arising from orders made under the statutory appellate provisions in section 66(2). A best judgment assessment under section 23(4) did not attract an appeal under the proviso to section 30, so it did not produce an order under section 31 from which a reference could be sought. Challenges to the validity, reasonableness, or arbitrariness of such an assessment lay in revision under section 33, but no statutory right existed to compel a reference. An incompetent appeal rejected in limine could not be treated as an order under section 31 for section 66 purposes.

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Issues: Whether the High Court could require the Commissioner to state a case at the assessee's instance in respect of questions arising from a best judgment assessment under section 23(4) of the Income Tax Act.

Analysis: The right of the assessee to demand a reference was held to be confined to questions arising out of orders under the statutory appellate provisions specified in section 66(2). An assessment made under section 23(4) carried no appeal under the proviso to section 30, and therefore did not result in an order under section 31 from which a reference could be sought. Questions about the validity, reasonableness, or arbitrariness of such an assessment could be dealt with in revision under section 33, but the assessee had no statutory right to compel a reference on those questions. The Court also rejected the argument that an incompetent appeal rejected in limine could be treated as an order under section 31 for the purpose of section 66.

Conclusion: The assessee had no right to compel a reference on questions arising from the best judgment assessment, and the High Court had no jurisdiction to direct the Commissioner to state a case.

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