Jurisdiction for income-tax references depends on a valid Tribunal order in a proper appeal; inherent power cannot create a reference.

A valid reference under the Income-tax Act arises only from an order made by the Appellate Tribunal in a proper appeal within the statutory appellate scheme. A recomputation made by the Income-tax Officer after giving effect to Tribunal directions was not an assessment order capable of supporting an appeal, and the Appellate Assistant Commissioner's refusal to admit the appeal could not be treated as an order under the appellate provisions. A miscellaneous application before the Tribunal was therefore not an appeal under the Act, and an order made on a supposed inherent power could not generate a question of law for reference. The reference was consequently incompetent for want of jurisdiction, and the High Court properly declined to answer it.

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Issues: Whether the Appellate Tribunal had jurisdiction to entertain a miscellaneous application and whether any valid reference to the High Court could arise from the Tribunal's order in the absence of a proper appeal under the Act.

Analysis: The right of reference under the Income-tax Act depended on there being an order made by the Appellate Tribunal in a proper appeal arising under the statutory appellate scheme. The Income-tax Officer's recomputation after giving effect to the Tribunal's earlier directions was not an order made under the assessment provisions so as to support an appeal. The Appellate Assistant Commissioner's refusal to admit the appeal therefore could not be treated as an order under the appellate provisions, and the subsequent miscellaneous application before the Tribunal was not an appeal under the Act. As the Tribunal acted only on a supposed inherent power, its order on that application was not an order under the appellate section, and no question of law could arise out of such an order for the purpose of reference.

Conclusion: The reference was incompetent for want of jurisdiction, and the High Court was right in declining to answer the questions.

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