Requirement to state a case: court will not compel the Commissioner to refer substituted legal points post-decision.

Whether the High Court may require the Commissioner to state and refer a case under Section 66(3) turns on whether the legal points sought were those before the Commissioner when he decided. The Court held the provision contemplates compelling a statement only on the points the Commissioner had for consideration; allowing an assessee to abandon and substitute points after the Commissioner's decision frustrates the administrative process. Accordingly the mandamus request was dismissed and the Court declined to require a statement of case on substituted points of law.

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Issues: Whether the High Court can require the Commissioner of Income Tax to state and refer a case under Section 66(3) of the Income-tax Act where the assessee has altered or substituted the points of law originally presented to the Commissioner.

Analysis: Section 66(3) permits the High Court, if not satisfied with the Commissioner's refusal to state a case that a question of law arises, to require the Commissioner to state and refer the case on the points of law which he was considering. The Court examined the purpose of the provision and concluded that it contemplates requiring the Commissioner to state a case on the legal points he had before him at the time of his decision. Allowing an assessee to shift or substitute legal grounds after the Commissioner's consideration would defeat the Commissioner's deliberation and render that administrative process abortive. The Court applied this interpretation to the facts, noting that the assessee originally sought statement of case on four points, later abandoned two and substituted two different points; this procedural change prevented the Court from requiring a statement of case on the substituted points.

Conclusion: The application for a mandamus under Section 66(3) is dismissed; the High Court will not require the Commissioner to state and refer a case on points of law substituted by the assessee after the Commissioner's consideration. The decision is in favour of the Revenue.

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