Reference under the Income-tax Act may differ at the 256(2) stage, and the Tribunal was directed to state the first question.

Questions proposed under section 256(2) of the Income-tax Act, 1961, may differ from those raised under section 256(1) where the reference issue is independently examinable on the Tribunal's order. On the facts stated, question No. 1 was found to arise from the Tribunal's order and was therefore directed to be stated for reference. The application was allowed in part, with the reference confined to that question.

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Issues: Whether questions sought to be referred under section 256(2) of the Income-tax Act, 1961, could differ from those raised under section 256(1) of the Act, and whether question No. 1 arose from the Tribunal's order for reference.

Outcome: The application was allowed in part and the Tribunal was directed to state question No. 1 for reference.

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