COMMISSIONER OF INCOME TAX KERALA, ERNAKULAM vs V. DAMODARAN, TRIVANDRUM

The Supreme Court ruled that the Appellate Tribunal lacked the authority to refer questions of law to the High Court under Section 256(1) of the Income Tax Act, 1961, unless initiated by the aggrieved party. The Court clarified that only the party filing a reference application can specify the questions of law, and a non-applicant cannot claim a right to refer questions based on another party's application. The judgment emphasized the procedural requirements for filing reference applications under the Income Tax Rules, 1962, affirming the need for clarity in such legal processes.