Reference applications in pending pre-1961 income-tax proceedings must be filed by the authority competent under the 1922 Act.

For a reference arising from a pending pre-1961 assessment, competence is governed by the Indian Income-tax Act, 1922 because Section 297(2)(c) of the Income-tax Act, 1961 preserves such proceedings as if the 1961 Act had not been enacted. Under Section 66(1) of the 1922 Act, only the Commissioner could move a reference, so an Additional Commissioner lacked authority to file the application. The reference application for assessment year 1959-60 was therefore incompetent, and the impugned order was correct in law.

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Issues: Whether, in relation to assessment year 1959-60, an application for reference to the High Court could validly be made by the Additional Commissioner of Income-tax.

Analysis: The reference application was governed by the Indian Income-tax Act, 1922 because proceedings relating to a pre-1961 assessment pending on the commencement of the Income-tax Act, 1961 had to be continued and disposed of as if the 1961 Act had not been passed. Under Section 66(1) of the Indian Income-tax Act, 1922, only the Commissioner was competent to move a reference, whereas under Section 256(1) of the Income-tax Act, 1961 an Additional Commissioner could do so. Since the present reference was part of pending proceedings covered by the saving provision in Section 297(2)(c) of the Income-tax Act, 1961, the competence had to be tested under the 1922 Act.

Conclusion: The Additional Commissioner was not competent to file the reference application, and the impugned order was correct in law.

Ratio Decidendi: A reference application arising from a pending pre-1961 assessment is governed by the Indian Income-tax Act, 1922 under the saving provision in Section 297(2)(c) of the Income-tax Act, 1961, and must be filed by the authority competent under the 1922 Act.

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