Substantial Question of Law in income-tax appeal not a bar where identical issue was already pending in connected references.

The High Court's refusal to entertain the Revenue's appeal on the basis that no substantial question of law arose was not sustainable where the Revenue had already pursued an identical issue for a prior assessment year under section 256(2) of the Income-tax Act. The matter was required to be heard together with the connected income-tax references, and the appeal was restored for disposal on merits.

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Issues: Whether the High Court was justified in declining to entertain the appeal on the ground that no substantial question of law arose, and whether the matter should be restored for decision on merits.

Analysis: The High Court had refused to entertain the appeal despite the Revenue's earlier reference application under section 256(2) of the Income-tax Act on an identical issue for a previous assessment year. In these circumstances, the refusal to entertain the appeal was not sustained, and the matter was required to be heard along with the connected income-tax references.

Outcome: The order of the High Court was set aside and the appeal was restored to its file for disposal on merits along with the connected references.

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