Scrutiny of reference applications to be filed u/s256(2). - Income Tax - 1654/CBDT

INSTRUCTION NO. 1654/CBDT Dated: October 22, 1985 In a case which has come to Board's notice reference application u/s.256(1) was filed in respect of 4 questions of law. The application was rejected by the Tribunal. The Board aurthorised the commissioner to file Reference Application u/s.256(2) before the High Court in respect of all the 4 questions of law. However, the reference application that was filed before the High Court was only in respect of one question of law. The Commissioner has explained that this happened due to lapse on the part of the Standing Counsel. That may be so. However reference applications u/s.256(2) before the High Court are signed by the Commissioner. It is the duty of the judicial branch to properly scrutinise the reference application before they are put up to the commissioner for signature. Before signing the Application the commissioner should check the reference application in respect of some of the points: 1) Name and address of the assessee and the assessment years under reference. 2) Questions of law under reference- whether they are properly framed and are the same as approved. 3) where the questions proposed to be referred are found to have been subsequently settled by the judgement of the supreme court or by a legislative amendment or by Board's instructions or circulars the commissioner should reconsider the need for filing the reference application in the light of the changed legal position so that infructous reference applications are not filed.