Reference of questions of law allowed where Tribunal's findings on separate entity status and registration required judicial opinion.

Questions of law were found to arise from the Tribunal's order on whether the assessee was a separate entity, whether its assessments should be treated as substantive, and whether cancellation of registration had been wrongly set aside with continuation of registration granted. On the material before it, the HC held that the proposed questions were fit for reference under section 256(2) of the Income-tax Act, 1961. The Tribunal was directed to state the case and refer the questions of law for opinion.

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Issues: Whether questions of law arose from the Tribunal's order so as to require a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The applications sought reference of two questions concerning the Tribunal's interference with the Appellate Assistant Commissioner's findings that the assessee was a separate entity and that its assessments should be treated as substantive, and with the order setting aside cancellation of registration/continuation of registration. On the material placed, the Court found that the proposed questions did arise out of the Tribunal's order and were fit to be referred for opinion.

Conclusion: The applications were allowed and the Tribunal was directed to state the case and refer the questions of law to the Court.

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