https://www.taxtmi.com/caselaws?id=6128 In reference proceedings under section 256(2) of the Income-tax Act, the High Court should confine itself to whether a referable substantial question of law arises and, if so, direct the Tribunal to state the case; it should not decide the merits of the tax issue at that stage. The proposed question concerning inclusion of agricultural income for computing accumulation under section 11 was treated as a substantial question of law, so refusal to direct a reference was unsustainable. A connected section 260A appeal also could not be dismissed merely because the reference application had been rejected, and it had to be heard on the substantial question of law. The High Court orders were set aside and the matter restored. en-us Tue, 28 Jan 2003 00:00:00 +0530 Tue, 02 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6128 In reference proceedings under section 256(2) of the Income-tax Act, the High Court should confine itself to whether a referable substantial question of law arises and, if so, direct the Tribunal to state the case; it should not decide the merits of the tax issue at that stage. The proposed question concerning inclusion of agricultural income for computing accumulation under section 11 was treated as a substantial question of law, so refusal to direct a reference was unsustainable. A connected section 260A appeal also could not be dismissed merely because the reference application had been rejected, and it had to be heard on the substantial question of law. The High Court orders were set aside and the matter restored. Case-Laws Income Tax Tue, 28 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6128