- (1.) Heard learned counsel for the parties.
(2.) The only question for consideration in this petition is, whether a reference application under Section 256(1) of the Income-tax Act, 1961, is maintainable against the order passed under Section 254(2) of the said Act. This question came up for consideration before this court in Chemicals and Allied Products v. Income-tax Appellate Tribunal [1989] 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 Section 254(2) of the said Act is maintainable.
(3.) Following the aforesaid decision, we quash the order dated 26th August, 1987 (annexure-7 to the writ petition), passed by the Income-tax Appellate Tribunal, Allahabad.;