Finality of Tribunal findings bars re-litigation; fresh assessment under a binding appellate direction is not time-barred.

Questions already decided by the Tribunal in an earlier round could not be reopened in a later reference proceeding, because those findings had attained finality under section 254(4) of the Income-tax Act, 1961. The High Court's jurisdiction under section 256(2) extended only to questions arising from the Tribunal's order and properly sought before it, so repeated attempts to reagitate the same issues were impermissible. Once the direction for a fresh assessment became unassailable, section 153(3) applied and the limitation challenge failed; the same approach had been recognised under section 34(3) of the Income-tax Act, 1922.

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Issues: Whether the Tribunal was justified in refusing to call for a reference on questions already decided in the earlier appeal, and whether the fresh assessment made pursuant to the earlier appellate direction could be challenged as barred by limitation.

Analysis: The questions sought to be raised had already been considered and rejected by the Tribunal in the earlier round, and those findings had attained finality under section 254(4) of the Income-tax Act, 1961. The High Court's jurisdiction under section 256(2) could be invoked only in respect of questions that arose from the Tribunal's order and were properly sought before it. Permitting the assessee to reagitate the same issues would defeat the settled principle of finality of proceedings. The Court further noted that once the direction to make a fresh assessment stood unassailable, section 153(3) of the Income-tax Act, 1961 applied, and the plea of limitation did not survive; the corresponding principle had also been recognized under section 34(3) of the Income-tax Act, 1922.

Conclusion: The refusal to direct a reference was upheld, and the assessee's challenge to the fresh assessment was rejected.

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