Construction of deed clauses on definite shares in house property was held to raise a referable question of law.

Construction of the deed governing members' shares in house property raised a referable question of law because the issue turned substantially on the interpretation of the document's clauses and the application of section 26 of the Income-tax Act, 1961, even though the ascertainability of the shares involved factual inquiry. The court held that construction of a material document is a question of law, so the Tribunal's order gave rise to a reference under section 256(2). The second proposed question was not pressed separately because it was already covered by the first, and reference was confined accordingly.

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Issues: Whether a question of law arose from the Tribunal's order so as to require reference under section 256(2) of the Income-tax Act, 1961, and whether the reference should be confined to the first question as the second was covered by it.

Analysis: The determination whether the members' shares in the house property were definite and ascertainable involved factual inquiry, but the answer depended substantially on the construction of the relevant clauses of the deed and the application of section 26 of the Income-tax Act, 1961. Construction of a material document was a question of law, and therefore the Tribunal's order gave rise to a referable question. The second proposed question was not separately pressed, being covered by the first.

Conclusion: The application succeeded and the Tribunal was directed to state the case and refer the first question of law for opinion.

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