Supreme Court certification under section 261 is confined to section 256 references; Chapter XX-A appeals and fitness requests were rejected.

Section 261 of the Income-tax Act, 1961 is confined to judgments of the High Court delivered on references under section 256, so an appeal arising from Chapter XX-A cannot be certified for appeal to the Supreme Court under that provision. The Court treated the omission to cover Chapter XX-A appeals as a legislative gap that could not be filled by interpretation, and the request under section 261 was rejected. On the constitutional request, the Court found that the underlying matters did not raise substantial questions of law of general importance, so the requirements for a certificate of fitness under Articles 133 and 134A were not met and the oral applications were rejected.

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Issues: (i) whether an appeal arising from Chapter XX-A of the Income-tax Act, 1961 could be certified for appeal to the Supreme Court under section 261 of the Act; (ii) whether the matters raised substantial questions of law of general importance warranting a certificate under Articles 133 and 134A of the Constitution of India.

Issue (i): whether an appeal arising from Chapter XX-A of the Income-tax Act, 1961 could be certified for appeal to the Supreme Court under section 261 of the Act.

Analysis: Section 261 expressly permits an appeal to the Supreme Court only from a judgment of the High Court delivered on a reference made under section 256. An order passed in an appeal under Chapter XX-A is not an order on a reference under section 256, and the statutory language could not be extended by judicial interpretation to include such appeals. The omission to provide for such orders was noted as a legislative gap, but it could not be supplied by the Court.

Conclusion: The petitions were not maintainable under section 261 of the Income-tax Act, 1961.

Issue (ii): whether the matters raised substantial questions of law of general importance warranting a certificate under Articles 133 and 134A of the Constitution of India.

Analysis: The oral applications for certification were considered on their own merits. The Court found that the underlying orders did not raise substantial questions of law of general importance requiring consideration by the Supreme Court, and therefore the constitutional basis for certification was not satisfied.

Conclusion: The oral applications for a certificate of fitness were rejected.

Final Conclusion: The proceedings failed both on maintainability under section 261 and on the merits of the request for a certificate of fitness, leaving the impugned requests dismissed.

Ratio Decidendi: Section 261 of the Income-tax Act, 1961 is confined to judgments delivered on references under section 256 and cannot be extended to appeals under Chapter XX-A, and a certificate of fitness under Articles 133 and 134A is warranted only where substantial questions of law of general importance are shown.

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