Reference on limitation under rectification law cannot be refused where a statable question of law arises from the Tribunal's order.

A reference under section 256(2) was warranted because the Tribunal's order raised a statable question of law on whether rectification under section 154 was barred by limitation. The Court held that it was not required at the reference stage to decide the merits of the limitation issue, and a reference cannot be refused merely because the Tribunal's view may later prove correct or because similar views have been accepted elsewhere. The Tribunal was directed to state the case and refer the question to the Court.

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

Analysis: The application concerned the Tribunal's view that the rectification order under section 154 was barred by limitation. The Court held that it was not at that stage called upon to pronounce on the merits of the limitation issue. It further held that a reference cannot be declined merely because the Tribunal's view may ultimately be correct, or because similar views have found acceptance in other High Courts, if a question of law does arise from the order.

Conclusion: A statable question of law arose and the Tribunal was directed to state the case and refer the question to the Court.

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