Referable question of law absent where Tribunal followed binding precedent on disallowance under section 40A(5).

In proceedings under section 256(2) of the Income-tax Act, the High Court found no referable question of law arising from the Tribunal's disallowance under section 40A(5). The Tribunal had followed the Court's binding Full Bench decision on the same issue, and no contrary judicial view was shown. As the proposed question was already covered by settled precedent, it did not justify a direction to state the case. The petitions for reference were therefore rejected.

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Issues: Whether, in proceedings under section 256(2) of the Income-tax Act, 1961, any referable question of law arose on the Tribunal's disallowance under section 40A(5) of the Income-tax Act, 1961.

Analysis: The Tribunal's view on disallowance under section 40A(5) was in line with the binding Full Bench decision of the Court in the earlier case on the same point. No contrary judicial view was shown. In such circumstances, the proposed question did not present a referable question of law warranting a direction to state the case.

Conclusion: The question was held not to be referable, and the petitions for reference were rejected.

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