Reference jurisdiction under income-tax law is limited to the referred question; new issues and fresh fact-finding cannot be introduced.

On a reference under section 66 of the Indian Income-tax Act, 1922, the High Court's role was confined to answering the question of law arising from the Tribunal's order on facts already found or admitted. Section 66(4) could be used only to supplement an inadequate statement of case so far as needed to decide that same referred question. It did not permit the Court to introduce a fresh issue, reopen a matter never urged before the Tribunal, or direct new factual inquiry to support a different legal contention. The Court held that the proposed question about whether cheques were posted at the assessee's request was outside the reference.

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Issues: Whether the High Court had jurisdiction under section 66(4) of the Indian Income-tax Act, 1922 to direct the Tribunal to submit a supplementary statement of case so as to investigate a new question not arising from the Tribunal's order and to require further inquiry into facts not canvassed before the income-tax authorities or the Tribunal.

Analysis: The statutory scheme of section 66 confines the High Court, on a reference, to answering only a question of law arising out of the Tribunal's order on the facts admitted or found by the Tribunal. Section 66(4) permits a case to be sent back only when the statement of case is insufficient to enable the Court to determine the referred question, and only for additions or alterations necessary to answer that same question. The power does not extend to introducing a fresh issue, reopening a matter never urged before the Tribunal, or authorising a new factual inquiry to support a different legal contention. The Court held that the question whether the cheques were posted at the assessee's request was wholly outside the reference as made and could not be introduced through section 66(4).

Conclusion: The High Court had no jurisdiction to direct a supplementary statement of case on the new point, and the assessee succeeded.

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