Binding precedent bars reference when the same tax issue is already decided and remains unreversed by the Supreme Court.

An earlier High Court decision on the same income-tax issue remained binding on the Department until reversed by the Supreme Court. Because that precedent already governed the point, the Tribunal's order did not give rise to any referable question of law, and reference under section 256(2) could not be directed. The applications for reference were therefore correctly refused, and the Commissioner had no entitlement to a reference on the issue already settled by binding precedent.

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Issues: Whether a reference could be directed under section 256(2) of the Income-tax Act, 1961 when the point involved had already been decided by the High Court and remained unreversed by the Supreme Court.

Analysis: The earlier decision of the High Court on the same issue was binding on the Department so long as it had not been reversed by the Supreme Court. In that situation, no referable question of law could be said to arise from the Tribunal's order.

Conclusion: The applications for reference were rightly refused and the Commissioner was not entitled to have a question referred.

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