Framing of question for reference. - Income Tax - 1676/CBDT

INSTRUCTION NO. 1676/CBDT Dated: December 13, 1985 The Supreme Court in CIT Vs. S.P.Jain (1973) 87 ITR 370(381) held as under : "In our view, the High Court and this court have always the jurisdiction to intervene if it appears that either the Tribunal has misunderstood the statutory language, because the proper construction of the statutory language is a matter of law, or it has arrived at a finding based on no evidence or where the finding is inconsistent with the evidence or contradictory of it, or it has acted on material partly relevant and partly irrelevant or where the Tribunal draws upon its own imagination, imports facts and circumstances not apparent from the record or bases its conclusions in mere conjectures or surmises, or where no person judicially acting and properly instructed as to the relevant law could have come to the determination reached. In all such cases the findings arrived at are vitiated." The Board desire that while framing the question for reference in regard to interpretation of statutory language, the relevant provision of the statute should be mentioned in the question of law sought to be referred. Where the challenge to the Tribunal's order is on ground of perversity, the question sought to be referred should bring out the finding of fact which is perverse and the reason for the perversity-whether it is based on no evidence, irrelevant evidence or ignoring relevant and material evidence. The question should make a mention of such an evidence. Unnecessary questions should be avoided. The arguments which can be advanced at the hearing should not be incorporated in the question. The above may please be brought to the notice of all the officers working in your charge.