CHAPTER XX — APPEALS AND REVISION | C.—Reference to High Court
CHAPTER XX — APPEALS AND REVISION | C.—Reference to High Court
Section 260 — Decision of High Court or Supreme Court on the Case Stated
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Spent in practice (pre-1998 reference regime).
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 260.
Nature / mechanism: The Court hearing a reference decides the questions of law and delivers a judgment containing the grounds; the Tribunal then passes orders to dispose of the case conformably to that judgment. Costs are in the Court's discretion.
Litigation profile: The advisory nature of the reference jurisdiction is settled; little live litigation — candour rule.
A. COMMENTARY
Advisory jurisdiction: the Court answers, the Tribunal gives effect
On a reference the High Court (or Supreme Court) does not decide the appeal; it answers the question(s) of law in an advisory capacity, and the Tribunal then disposes of the case in conformity with the opinion (section 260(1)), giving effect to the answer. This is the structural difference from the section 260A appeal, where the High Court itself decides the lis.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025); the Finance Act, 2026 makes no change to this section. Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Decision of High Court or Supreme Court on the case stated.
260. (1) The High Court or the Supreme Court upon hearing any such case shall decide the questions of law raised therein, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conformably to such judgment.
(1A) Where the High Court delivers a judgment in an appeal filed before it under section 260A, effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified copy of the judgment.
(2) The costs of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference shall be in the discretion of the Court. CC.—Appeals to High Court
C. AUTHORITIES
Candour rule — the advisory character is settled; cognate authority below.
Relevance Confirms the High Court's role on a reference is to answer the question arising out of the Tribunal's order, which the Tribunal then implements.
CHAPTER XX — APPEALS AND REVISION | C.—Reference to High Court
Section 260 — Decision of High Court or Supreme Court on the Case Stated
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Spent in practice (pre-1998 reference regime).
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 260.
Nature / mechanism: The Court hearing a reference decides the questions of law and delivers a judgment containing the grounds; the Tribunal then passes orders to dispose of the case conformably to that judgment. Costs are in the Court's discretion.
Litigation profile: The advisory nature of the reference jurisdiction is settled; little live litigation — candour rule.
A. COMMENTARY
Advisory jurisdiction: the Court answers, the Tribunal gives effect
On a reference the High Court (or Supreme Court) does not decide the appeal; it answers the question(s) of law in an advisory capacity, and the Tribunal then disposes of the case in conformity with the opinion (section 260(1)), giving effect to the answer. This is the structural difference from the section 260A appeal, where the High Court itself decides the lis.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025); the Finance Act, 2026 makes no change to this section. Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Decision of High Court or Supreme Court on the case stated.
260. (1) The High Court or the Supreme Court upon hearing any such case shall decide the questions of law raised therein, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conformably to such judgment.
(1A) Where the High Court delivers a judgment in an appeal filed before it under section 260A, effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified copy of the judgment.
(2) The costs of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference shall be in the discretion of the Court. CC.—Appeals to High Court
C. AUTHORITIES
Candour rule — the advisory character is settled; cognate authority below.
Cluster 1 — Advisory character of the reference
CIT v. Scindia Steam Navigation Co. Ltd., (1961) 42 ITR 589 (SC)
Relevance Confirms the High Court's role on a reference is to answer the question arising out of the Tribunal's order, which the Tribunal then implements.