- (1.) HEARD learned counsel for the parties. The only question for consideration in this petition is, whether a reference application under S. 256 (1) of the IT Act, 1961, is maintainable against the order passed under S. 254(2) of the said Act. This question came up for consideration before this Court in Chemicals and Allied Products vs. Tribunal ( 19891 175 ITR 344 (supra) and the Bench, of which one of us was a member, took the view that a reference against the order passed under S. 254(2) of the said Act is maintainable.
(2.) FOLLOWING the aforesaid decision, we quash the order dated 26th August, 1987 (annexure -7 to the writ petition), passed by the Tribunal, Allahabad. The Tribunal is directed to consider the application of the petitioner made under S. 256(1) and decide the same on merits according to law.;