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Issues:
1. Whether a chartered accountant can bind a client by statements made in the course of assessment proceedings. 2. Whether a certificate from the Income-tax Appellate Tribunal is required for an application under section 256(2) of the Income Tax Act. Analysis: 1. The judgment pertains to an application under section 256(2) of the Income Tax Act seeking reference of certain questions of law to the court for determination. The questions revolved around whether a chartered accountant representing the assessee had the legal competence to make an agreement with the Income Tax Officer (ITO) binding the appellant. The Tribunal disallowed certain expenses claimed by the assessee based on a statement made by the chartered accountant, which raised the issue of whether such statements could bind the assessee. The Tribunal's decision was primarily influenced by the statement made by the chartered accountant, leading to a crucial question on the authority of a chartered accountant to bind a client in assessment proceedings. 2. The judgment highlighted the requirement of a certificate from the Income-tax Appellate Tribunal for an application under section 256(2) of the Act. Rule 191(2) of the High Court rules mandated such a certificate, but the absence of it in the present case was contested by the revenue's counsel. The counsel for the assessee argued that the application had not been withdrawn, and the court fee had not been refunded, as per the provisions of section 256(2) and (3). The court deliberated on the significance of the rule in imposing conditions on the right to make an application and questioned the practical effectiveness of such a requirement. Despite the objection raised post the judgment, the court found no substantial defect that would warrant the dismissal of the application due to the non-production of the certificate as mandated by the rule. In conclusion, the judgment addressed the authority of a chartered accountant to bind a client in assessment proceedings and examined the procedural requirement of a certificate from the Income-tax Appellate Tribunal for applications under section 256(2) of the Income Tax Act, ultimately ruling in favor of allowing the reference on the questions of law raised in the case.
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