Tribunal reference under income-tax law directed where proposed questions matched an earlier year for the same assessee.

The Delhi High Court held that, where the questions proposed by the Revenue were identical to questions already directed to be referred in an earlier year involving the same assessee, the Tribunal should state the case and refer both questions of law under section 256(2) of the Income-tax Act, 1961. Relying on the earlier reference order, the Court found it appropriate to require reference of the proposed questions rather than refuse it, and directed the Tribunal to make the reference.

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Issues: Whether the Tribunal was required to state the case and refer the two proposed questions of law to the High Court under section 256(2) of the Income-tax Act, 1961.

Analysis: The assessment year was 1969-70 and the questions sought to be raised were similar to those already directed to be referred in an earlier year involving the same assessee. Following the earlier decision, the Court found it appropriate to direct reference of the two questions proposed by the Revenue.

Conclusion: The Tribunal was directed to state the case and refer both questions of law to the High Court.

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