Section 256(2) reference jurisdiction is unavailable when the Tribunal refuses for reasons other than absence of a question of law.

Section 256(2) of the Income-tax Act is available only when the Tribunal refuses to state a case on the ground that no question of law arises from its order. Where the refusal is based instead on a different reason, such as the Revenue's failure to supply required annexures for the draft statement despite opportunities, the High Court's direction-making jurisdiction is not attracted. An application seeking reference on that basis is therefore not maintainable and is rejected.

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Issues: Whether an application under section 256(2) of the Income-tax Act, 1961 was maintainable when the Tribunal had declined to state the case not on the ground that no question of law arose, but because the Revenue had failed to supply the annexures required for the draft statement of the case.

Analysis: The right to invoke section 256(2) arises only where the Tribunal refuses to state the case on the ground that no question of law arises from its order. A refusal based on a different ground, such as non-furnishing of annexures despite opportunities, does not attract that jurisdiction. The applicant could not use section 256(2) to challenge the Tribunal's order passed under section 256(1) on a ground outside the statutory condition for invoking the High Court's direction-making power.

Conclusion: The application was not maintainable and was rejected.

Ratio Decidendi: Section 256(2) can be invoked only when the Tribunal refuses to state the case on the ground that no question of law arises; a refusal on any other ground does not confer jurisdiction on the High Court to direct a reference.

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