Reference under tax law refused where rectification issues were debatable and no referable question of law arose.

No reference could be directed under section 256(2) where the Tribunal's finding that the assessee had not been given a reasonable opportunity in rectification proceedings was a finding of fact, and the matters sought to be reopened under section 154 were debatable rather than errors apparent on the record. On that basis, no referable question of law arose from the Tribunal's order, and the Revenue's application was rejected.

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Issues: Whether a reference under section 256(2) of the Income-tax Act, 1961 could be directed on the questions proposed by the Revenue arising from the Tribunal's order.

Analysis: The refusal to grant the reference turned on two conclusions: first, the Tribunal's finding that the assessee had not been given a reasonable opportunity in the rectification proceedings was a finding of fact; second, the issues sought to be reopened under section 154 of the Income-tax Act, 1961 were debatable and therefore did not disclose any error apparent on the record. On these premises, no referable question of law arose from the Tribunal's order.

Conclusion: No direction for reference could be issued under section 256(2) of the Income-tax Act, 1961, and the Revenue's application was rejected.

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