Provisions u/s 257,Income - Tax Act, 1961. - Income Tax - 1020/CBDT

INSTRUCTION NO. 1020/CBDT Dated : November 5, 1976 Section(s) Referred: 257 Statute: Income - Tax Act, 1961 Section 257 of the I.T. Act, 1961 provides that if, on an application made u/s 256, the Appellate Tribunal is of the opinion that on account of conflict in the decisions of the High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court. The Direct Taxes Enquiry Committee noticed that these provisions have been rarely invoked and in para. 6.154 of its report, the Committee has recommended (Recommendation No. 442) as under:- "In order that provisions of section 257 of the I.T. Act are invoked more often, the Commissioners should be advised to apply to the Tribunal for making direct references to the Supreme Court in appropriate cases". 2. The recommendation made by the Direct Taxes Enquiry Committee has been accepted by the Government, as it has been given with a view to cut down avoidable delay in obtaining the final decision on controversial questions of law. The Board, therefore, desire that the Commissioners of Income-tax while scrutinising the order of the Appellate Tribunal for filing reference application u/s 256(1) should instruct the Departmental Representatives to request to Tribunal for making direct reference to the Supreme Court u/s 257, if there are conflicting decisions of two or more High Courts on any particular question of law. The Departmental Representatives may also make such request to the Tribunal in appropriate cases where a reference on a question of law is sought by the assessee. The C.I.T, while sending proposal for filing reference application u/s 256(1) to the Board, should mention the fact whether they deem it a fit case for making such request to the Tribunal u/s 257.