Tribunal rectification power under income-tax law found fit for reference on a question of law

The Tribunal's power to rectify its order under section 254(2) was treated as a question of law arising from its order, and the High Court found that issue fit for reference. On that basis, the Tribunal was directed to refer the stated question of law together with the statement of case under section 256(2).

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Issues: Whether the question of law arising from the Tribunal's order warranted a reference under section 256(2) of the Income-tax Act, 1961, concerning the Tribunal's jurisdiction to rectify its order under section 254(2) of that Act.

Analysis: The application was considered to involve a legal issue on the Tribunal's power to rectify its order under section 254(2) of the Income-tax Act, 1961. The Court was satisfied that the proposed question arose out of the Tribunal's order and was fit to be referred for the opinion of the High Court.

Conclusion: The Court directed the Income-tax Appellate Tribunal to refer the stated question of law along with the statement of case.

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