Capital gains on sale of cut rubber trees treated as settled law; no referable question of law arose.

Old and unyielding rubber trees were treated as a capital asset, and the sale proceeds from trees cut and sold by the assessee were regarded as chargeable to capital gains tax. Relying on binding precedent, the matter was considered settled and no debatable legal question was found to arise from the Tribunal's order. A reference under section 256(2) of the Income-tax Act, 1961 was therefore not warranted, and the request for reference was rejected.

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Issues: Whether any referable question of law arose from the Tribunal's order holding that the amount received on sale of cut and sold rubber trees was liable to capital gains tax and, consequently, whether a direction for reference under section 256(2) of the Income-tax Act, 1961 was warranted.

Analysis: Old and unyielding rubber trees were held to be a capital asset, and the sale proceeds from trees cut and sold by the assessee were treated as chargeable to capital gains. The matter was found to be settled by binding decisions, leaving no debatable legal question arising from the Tribunal's order.

Conclusion: No referable question of law arose, and the request for reference was rejected.

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