- (1.) Leave granted.
(2.) A question of law was sought to be referred to the High Court as provided under Section 256 of the Income Tax act on an application thereto made before the Tribunal. The Tribunal declined to refer the said question on the ground that in the facts and circumstances, the question of law would not arise at all. An application was made before the High Court calling for a reference under Section 256 (2) of the income Tax Act. The same having been rejected, this appeal is filed.
(3.) Having looked into the facts and circumstances of the case, we think that a question of law does arise. The Tribunal is directed to make a statement and refer the following question of law to the High Court for consideration: "Whether on the facts and in the circumstances of the case and in law, the tribunal justified in cancelling the direction issued by the ITO (TDS) for deposit of amount of TDS at Rs. 37,36,775/- with interest thereon at Rs. 1,48,465/- thus totalling to Rs. 38,85,240/-".;