High Court reference jurisdiction is limited to existing findings and cannot require a fresh enquiry into new facts.

In a reference under section 66 of the Indian Income-tax Act, the High Court's jurisdiction is confined to questions of law arising from the Tribunal's order and to facts already admitted or found by the Tribunal. It may reframe a reference to capture the real issue actually agitated, but it cannot enlarge the reference into a new question or direct a fresh enquiry to obtain new evidence. On the facts, the reference was wide enough to cover whether payment had been expressly or impliedly requested by cheque, so the High Court did not act outside its jurisdiction and the appeal failed.

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Issues: Whether the High Court had jurisdiction under section 66(4) of the Indian Income-tax Act to call for a supplemental statement of the case on a question not arising from the Tribunal's order and requiring a fresh enquiry.

Analysis: The statutory jurisdiction of the High Court on reference is confined to questions of law arising out of the Tribunal's order and to the facts admitted or found by the Tribunal. The High Court may reframe a question so as to bring out the real issue actually agitated before the Tribunal, but it cannot enlarge the reference into a new question or direct investigation of new facts leading to fresh evidence. On the facts of the case, the question referred was wide enough to permit consideration of whether there had been an express or implied request that payment be made by cheque, but any direction requiring a fresh enquiry beyond the existing record would have been impermissible. The order under challenge was therefore distinguishable from the case where the High Court had exceeded its jurisdiction.

Conclusion: The High Court did not exceed its jurisdiction in the manner complained of, and the appeal failed.

Ratio Decidendi: In a reference under section 66 of the Indian Income-tax Act, the High Court may only deal with a question of law arising from the Tribunal's order on the basis of facts already admitted or found, and cannot direct a fresh enquiry into new facts to decide a different question.

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