No referable question survives when the Tribunal follows binding High Court precedent already deciding the same tax questions.

An application under section 256(2) of the Income-tax Act is not maintainable where the Tribunal has declined a reference by following an earlier binding High Court decision that had already answered the same questions in favour of the assessee. If the proposed questions have been conclusively settled in the assessee's own case, the Tribunal's conformity with that precedent means no referable question of law survives for consideration under section 256(2). On that basis, no reference was called for.

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Issues: Whether an application under section 256(2) of the Income-tax Act, 1961 could be entertained when the Tribunal had refused a reference by following an earlier binding decision of the High Court answering the same questions in favour of the assessee.

Analysis: The questions proposed for reference had already been conclusively answered by the High Court in the assessee's own case. The Tribunal had merely followed that binding precedent and declined to make a reference under section 256(1). Where the Tribunal acts in conformity with an existing High Court decision, no referable question of law survives for consideration under section 256(2).

Conclusion: The application under section 256(2) was not maintainable and no reference was called for.

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