Supreme Court Rules 2013 | Order XLV

Order XLV - Reference under Section 257 of the Income-tax Act, 1961

Procedure for a direct Income-tax Appellate Tribunal reference to the Supreme Court where conflicting High Court decisions raise a question of law, including filing, records, appearance, hearing and costs.

Important position from 1 April 2026: The Income-tax Act, 2025 replaced the Income-tax Act, 1961, subject to its repeal, savings and transitional provisions. Section 257 of the 1961 Act dealt with a direct reference to the Supreme Court for specified pre-1 October 1998 Tribunal orders; it has no equivalent direct-reference provision in the 2025 Act. The section numbered 257 in the 2025 Act addresses a different subject. Order XLV is reproduced below for legacy and saved proceedings, and should not be treated as a generally available route for new tax appeals.

Legal basis and meaning of key provisions

Section 257, Income-tax Act, 1961: where a reference application under section 256 concerns an Appellate Tribunal order made before 1 October 1998 and conflicting High Court decisions on a question of law make direct consideration expedient, the Tribunal may state the case and refer it through its President to the Supreme Court.

Section 256: the earlier procedure for seeking a statement of case on a question of law to a High Court. Section 254: orders of the Income-tax Appellate Tribunal. Order XIX: Supreme Court Rules provisions on preparation of the record, applied where specified by Order XLV. References to historic authorities and designations in the Rules are preserved to avoid altering their original meaning.

Rule 1

A reference under section 257 of the Income Tax Act, 1961,

Rule 2

On receipt of such reference, the reference shall be

Rule 3

The reference shall be in the form of a statement of case

Rule 4

The Income Tax Appellate Tribunal shall, together with the

(i) A copy of the order of the Income Tax Officer;

(ii) Memorandum of appeal to the Appellate Assistant Commissioner;

(iii) A copy of the order of the Appellate Assistant Commissioner;

(iv) Memorandum of appeal to the Appellate Tribunal;

(v) A copy of the order of the Income Tax Appellate Tribunal under section 254 of the Income Tax Act, 1961;

(vi) A copy of the application for reference under section 256 of the Income Tax Act, 1961; and

(vii) Such other documents, as in the opinion of the Income Tax Appellate Tribunal, may be required by the Supreme Court at the hearing of the reference.

Rule 5

The Income Tax Appellate Tribunal shall together with the

Rule 6

When the Income Tax Appellate Tribunal refers a case to

Rule 7

The parties to the reference under section 256 of the

Rule 8

Upon receipt from the Income Tax Appellate Tribunal of the

Rule 9

The rules contained in Order XIX, shall apply mutatis

Rule 10

Upon the receipt of the reference along with the

Rule 11

Unless otherwise ordered by the Court, costs shall be

Rule 12

A copy of the order made by the Court hearing the

Rule 13

Save as otherwise provided by the rules contained in this Order the provisions of other rules (including the rules relating to appearance of Advocates but excluding rules 32, 33 and 34 of Order XIX) shall so far as may be apply to references under section 257 of the Income Tax Act, 1961.

Practical steps in a legacy tax reference

The reference originates with the Income-tax Appellate Tribunal rather than by directly filing an ordinary petition under section 257. The Tribunal prepares the statement of case and accompanying record, sends the material through its President, and notifies the parties. The Supreme Court Registry numbers the reference, obtains appearances and prepares the record. The Chief Justice of India appoints a Bench of at least three Judges. Any existing saved matter should be assessed against the applicable transitional provisions and subsequent directions of the Court.