Reference to High Court required where investment allowance and deduction issues under the Income-tax Act raised questions of law.

Questions concerning investment allowance under section 32A and deduction under section 80JJ of the Income-tax Act were treated as questions of law, not mere matters of fact. The refusal to draw up a statement of case on the ground that no question of law arose could not be sustained, particularly where the Revenue relied on an earlier decision involving the same assessee. The matter was required to be referred to the High Court for determination.

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Issues: Whether the questions relating to investment allowance under section 32A and deduction under section 80JJ of the Income-tax Act, 1961 were questions of law requiring reference to the High Court.

Analysis: The order declining reference rested on the view that no question of law arose. The Court noted that the two questions were clearly questions of law and that the Revenue relied on an earlier decision concerning the same assessee. On that basis, the refusal to draw up a statement of case could not stand, and the matter had to be sent to the High Court for decision.

Conclusion: The questions were required to be referred to the High Court.

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