No referable question of law arose where reassessment additions were resolved by factual findings and consequential adjustment.

Findings of fact and consequential adjustments in reassessment left no substantial referable question of law under section 256(2) of the Income-tax Act. The Tribunal had limited the addition for unexplained investment in money-lending business by applying the peak credit method and sustained only the reduced amount, while the addition for interest income from undisclosed sources was deleted after the main addition had already been set aside in appeal. As the disputes were resolved on factual determinations and follow-on consequences, the reference applications were correctly rejected.

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Issues: Whether any referable question of law arose from the Tribunal's order so as to warrant reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The dispute in both references turned on additions made in reassessment proceedings, one concerning unexplained investment in money-lending business and the other concerning interest income from undisclosed sources. In the first matter, the Tribunal restricted the addition by adopting the peak credit method and sustained only the reduced amount. In the second, the Tribunal deleted the consequential addition after the main addition had already been deleted in appellate proceedings. On these facts, the controversy was concluded by findings of fact and consequential adjustment, leaving no substantial or referable question of law for reference.

Conclusion: No referable question of law arose, and the reference applications were rightly rejected.

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