Income-tax reference questions of law were held referable, and the Tribunal was directed to state the case.

Under the income-tax reference provisions, the Kerala High Court held that the questions proposed by the Revenue did arise as questions of law and were therefore referable to the High Court. The Tribunal was directed to state the case and transmit the questions for reference, as the legal character of the issues satisfied the threshold for a reference.

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Issues: Whether the questions proposed by the Revenue arose as questions of law warranting a reference to the High Court under the income-tax reference provisions.

Outcome: The questions were held to be referable and the Tribunal was directed to state the case and refer them to the High Court.

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