Reference under Section 66(3) does not compel the Commissioner to state a case where issues did not arise on appeal.

Whether the Commissioner was obliged under Section 66(3) to state a case on two specified legal questions was considered; the court concluded that the only properly arising question from the Assistant Commissioner's appellate order concerned whether evidence supported that order, and that the assessee's complaints either did not arise in the appellate proceedings or were not referable under the statutory appeal-and-reference scheme. Consequently the application under Section 66(3) was found misconceived and dismissed, and the Commissioner was not required to state a case on the two proposed questions.

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Issues: Whether the Commissioner is required under Section 66(3) to state a case to the High Court on two specified questions of law arising out of the Assistant Commissioner's appellate order of 28th March 1930.

Analysis: The application sought a reference under Section 66(3) to compel the Commissioner to state a case on (i) the refusal to examine the Rangoon accounts because Shan States accounts were not produced and (ii) whether an assessment computed without details when the assessee showed a loss was a best judgment assessment or a penal assessment. The Court examined the scope of questions which can arise out of an appellate order under the relevant provisions and observed that the only question properly arising from the Assistant Commissioner's order was whether there was evidence to support that order. The Court further analysed that the issues raised by the assessee either did not arise in the appellate proceedings or were not matters which could be the subject of a reference under the scheme governing appeals and references in the statute.

Conclusion: The application under Section 66(3) is misconceived and is dismissed; the Commissioner was not required to state a case on the two questions and the assessee's request is refused (decision adverse to the assessee).

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