Mixed questions of law and fact supported reference of Tribunal issues to the High Court under income-tax procedure.

Mixed questions of law and fact arising from a challenge to an order under section 263 can justify a reference when the Tribunal declines to state the case. The High Court treated the proposed questions on the legality of the revision order, error, and prejudice to the Revenue as referable issues under section 256(2) of the Income-tax Act, 1961. The Revenue's applications were allowed, and the Tribunal was directed to draw up a statement of the case and refer the common questions to the High Court for opinion.

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Issues: Whether the Tribunal's refusal to refer the common questions to the High Court could be interfered with under section 256(2) of the Income-tax Act, 1961, when the proposed questions involved mixed questions of law and fact.

Analysis: The applications sought a direction to the Tribunal to state the case and refer three common questions concerning the legality of the order passed under section 263 and the Tribunal's findings on error and prejudice to the Revenue. The Court held that the questions proposed were mixed questions of law and fact and, therefore, required a statement of the case and reference for opinion of the High Court.

Conclusion: The Revenue's applications were allowed and the Tribunal was directed to draw up a statement of the case and refer the questions to the High Court.

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