Section 260A limits interference with factual findings, but unresolved business purpose of foreign travel justified remand.

In an appeal under section 260A of the Income-tax Act, the High Court held that concurrent factual findings on the genuineness of acquisition and lease of a skimmer machine, and the related depreciation claim, were findings of fact not giving rise to a substantial question of law, so those findings were left undisturbed. On foreign travel expenditure, however, the record lacked a clear factual finding on whether the travel of the vice-chairman's wife was for the assessee's business, and the matter was remitted for fresh factual determination. The court reiterated that interference is not warranted with possible findings based on evidence, but remand is appropriate where a material factual controversy remains unresolved.

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Issues: (i) Whether the Tribunal was justified in disturbing the concurrent factual findings on the genuineness of the acquisition and lease of the skimmer machine and on the claim for depreciation, and whether such questions raised any substantial question of law under section 260A of the Income-tax Act, 1961; (ii) Whether the disallowance of foreign travel expenditure required further fact-finding, particularly in relation to the travel of the wife of the vice-chairman.

Issue (i): Whether the Tribunal was justified in disturbing the concurrent factual findings on the genuineness of the acquisition and lease of the skimmer machine and on the claim for depreciation, and whether such questions raised any substantial question of law under section 260A of the Income-tax Act, 1961.

Analysis: The appellate jurisdiction under section 260A is confined to substantial questions of law. Findings of the Tribunal on facts, arrived at after reappreciation of evidence, are not open to interference merely because they differ from the findings of the Assessing Officer and the first appellate authority. The Tribunal had examined the evidence and reached a possible factual conclusion that the machine was acquired by the assessee and the lease transaction was genuine.

Conclusion: The challenge to the Tribunal's factual findings did not raise a substantial question of law, and the Revenue's objection on this issue failed.

Issue (ii): Whether the disallowance of foreign travel expenditure required further fact-finding, particularly in relation to the travel of the wife of the vice-chairman.

Analysis: While the absence of tangible business results from travel does not by itself justify disallowance, the record showed a specific dispute regarding the travel of a person who was neither a director nor shown to have a business role. The Tribunal did not record a factual finding on whether her travel was for the business of the assessee, and the allowance of the expenditure was not supported by an adequate appreciation of evidence on this aspect.

Conclusion: The matter on foreign travel expenditure was required to be sent back for a fresh factual determination.

Final Conclusion: The appeal succeeded only to the extent of remitting the foreign travel expenditure issue for reconsideration, while the Tribunal's factual conclusions on the skimmer machine and depreciation were left undisturbed.

Ratio Decidendi: In an appeal under section 260A of the Income-tax Act, 1961, the High Court does not interfere with possible findings of fact based on appreciation of evidence, but may remit an issue where the Tribunal has failed to record a necessary finding on a material factual controversy.

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