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Reference Application under section 256(1)

Appeal against Appellate Tribunal’s order lies with the High Court on the question of law, for which the tax payer or the Commissioner of Income tax (Appeals) within 60 days of receipt of the order of the Appellate Tribunal, has to make an application to the Hon’ble Income tax Appellate Tribunal to refer to the Hon’ble High Court any question of law arising out of the Order of the Appellate Tribunal. Upon receipt of such application The Appellate Tribunal draw up a statement of the case and refer it to the Hon’ble High Court within 120 days of receipt of such application.

Frequently Asked Questions

A Reference Application under Section 256(1) is filed before the Income Tax Appellate Tribunal (ITAT) to refer a question of law arising from its order to the High Court.

The application must be filed within 60 days from the date of receipt of the ITAT order.

No, under Section 256(1), the taxpayer or the Commissioner must first request the ITAT to refer the question of law to the High Court.

Only questions of law arising out of the ITAT order can be referred to the High Court. Factual disputes cannot be challenged under this section.

If the ITAT accepts the application, it prepares a statement of the case and refers the question of law to the High Court within 120 days.
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