Paper book non-filing in an income-tax reference can justify the High Court refusing to answer the reference.

Where a tax reference is made at the instance of the assessee, the High Court Rules may require the assessee to prepare and supply the paper book before the matter is ripe for hearing. If the paper book is not filed despite notice, the Court is not obliged to answer the reference and may return it unanswered. The procedural requirement is treated as a condition for hearing, and the Court may rely on the rule-based process and supporting precedent to decline consideration on the merits until compliance is made.

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Issues: Whether, in a reference at the instance of the assessee under the Income-tax Act, the High Court can decline to answer the reference when the assessee fails to prepare and file the paper book required by the High Court Rules.

Analysis: The reference was made under section 256(1) of the Income-tax Act, 1961. The relevant High Court Rules required the party at whose instance the reference was made to prepare the paper book, and the case could be heard only after the paper book had been prepared and supplied. Since the paper book was not filed despite notice, the reference was not ripe for hearing. The Court followed the rule-based procedure and the principle that, where the requisite paper book is not prepared by the assessee who sought the reference, the Court is not obliged to answer the reference. The Court also noted support from earlier authority that refusal to answer in such circumstances is permissible.

Conclusion: The Court could decline to answer the reference and return it unanswered.

Final Conclusion: The reference was not decided on merits and was sent back without an answer because the procedural requirement for hearing was not satisfied.

Ratio Decidendi: Where a tax reference is made at the instance of the assessee and the required paper book is not prepared, the High Court may refuse to answer the reference and return it unanswered.

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