Rectification order does not restart limitation for income-tax references; the original appellate order remains the operative trigger.

A reference application under Section 66(1) of the Income-tax Act, 1922 is timed from service of the original appellate order under Section 33(4); a later rectification under Section 35 does not create a fresh order or restart limitation. Rectification only corrects an apparent mistake in the record, and cannot be used to revive a reference right that has already expired under the statutory scheme. The High Court also recognised that it could examine whether the Tribunal stayed within its statutory powers in making the reference. On the facts noted, the reference application was time-barred and the Tribunal had no authority to state the case.

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Issues: Whether a reference application under Section 66(1) of the Income-tax Act, 1922 was within time when it was made after the Tribunal's rectification order under Section 35 and whether the Tribunal could validly state a case on that basis.

Analysis: The period for seeking a reference under Section 66(1) runs from service of the order made under Section 33(4), and the later rectification under Section 35 only corrects an apparent mistake in the record. Such rectification does not amount to a fresh order giving rise to a new limitation period for reference. If it were otherwise, the four-year rectification power could indirectly revive a reference right that had already expired, which would defeat the statutory scheme. The High Court also held that it was competent to examine whether the Tribunal had acted within the limits of the statute in making the reference.

Conclusion: The application for reference made on 29 March 1945 was time-barred and the Tribunal had no authority to refer the question to the High Court; the preliminary objection succeeded and the reference was incompetent.

Ratio Decidendi: A rectification order under Section 35 of the Income-tax Act, 1922 does not create a fresh order for the purpose of limitation under Section 66(1); the right to seek a reference remains tied to the original appeal order.

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