Reference under section 256(2) refused where the proposed question did not arise from the Tribunal's order.

A question arising from a Tribunal order is not referable under section 256(2) unless it actually emerges from that order and the relevant ground was urged below. Here, the material did not show that the ground later relied on had been raised before the Tribunal, and the appellate authority noted that the stay request had already been rejected by the Income-tax Officer. On that basis, the proposed question was held not to arise out of the Tribunal's order, so reference was declined.

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Issues: Whether a question of law arose from the Tribunal's order so as to warrant a reference under section 256(2) of the Income-tax Act, 1961, in relation to the penalty imposed under section 221 when a stay application under section 220(6) was pending.

Analysis: The material on record did not show that the ground now relied upon had been urged before the Tribunal. The appellate authority had also noted that the request for stay of demand had been rejected by the Income-tax Officer. In these circumstances, the proposed question could not be said to arise out of the Tribunal's order.

Conclusion: The question was not referable under section 256(2), and the application for reference was rejected.

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