Referable question of law on refusal to register a firm required the Tribunal to state the case for decision.

A refusal by the Tribunal to register a firm can give rise to a referable question of law under the Income-tax Act, 1961 where the legal basis of the refusal is in dispute. The Rajasthan HC held that such a question did arise on the facts presented and directed the Tribunal to state the case and refer the questions for decision under section 256(2).

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Issues: Whether a question of law arose from the Tribunal's refusal to register the firm, so as to warrant a reference under section 256(2) of the Income-tax Act, 1961.

Outcome: The Court held that a question of law did arise and directed the Tribunal to state the case and refer the questions for decision.

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