1993 (4) TMI 60

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....section 256(2) seeking a direction to the Tribunal to refer certain questions, said to be questions of law, to this court for opinion. The application was admitted for hearing on November 24, 1992, and the Income-tax Officer's assessment order was stayed. The Revenue seeks vacation of this order and that is how the matter is before us. Any attempt to answer the question posed would naturally turn to the nature of jurisdiction possessed by the High Court under section 256 of the Act. If this jurisdiction can be said to be appellate, revisional or supervisory, the court would certainly have power to grant the stay pending disposal of the application. In any other case, it would require to be examined whether the court possesses any such po....

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....or supervisory. While exercising it, the court does not sit in appeal over the judgment of the Tribunal. Nor can it correct any error of fact or law in the decision of the Tribunal. Consequently, it has no power to grant any stay which power is normally incidental and ancillary to the types of jurisdiction referred to hereinabove. This view finds support in the Supreme Court judgment in CIT v. Scindia Steam Navigation Co. Ltd. [1961] 42 ITR 589 (SC), wherein it was held thus : "The jurisdiction of the High Court in a reference under section 256 is a special one different from its jurisdiction as a civil court. The High Court hearing a reference under that section did not exercise any appellate or revisional or supervisory jurisdiction ov....

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....sed by the High Court must be kept separate from the concept of inherent powers or incidental powers in exercising jurisdiction under section 66 of the 1922 Act or section 256 of the 1961 Act. Section 66 of the Indian Income-tax Act of 1922 or section 256 of the Income-tax Act of 1961 is a special jurisdiction of a limited nature conferred not by the Code of Civil Procedure or by the Charters or by the Special Acts constituting such High Courts but by the special provisions of the Income-tax Acts of 1922 or 1961 for the limited purpose of obtaining the High Court's opinion on questions of law. In giving that opinion properly, if any question of incidental or ancillary power arises such as giving an opportunity or restoring a reference dismi....