Tribunal's factual finding on finance business controlled classification as a financial company in tax reference proceedings.

A Tribunal's factual finding that the assessee's principal business was finance business was treated as ative on whether it was a financial company within Explanation (c) to Section 40A(8) of the Income-tax Act, 1961. In a reference under Section 256(1), such a finding of fact could not be reappreciated or disturbed unless a legal infirmity was shown. The issue was answered against the Revenue and in favour of the assessee.

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Issues: Whether the assessee was a financial company within the meaning of Explanation (c) to Section 40A(8) of the Income-tax Act, 1961.

Analysis: The Tribunal had recorded a factual finding that the principal business of the assessee was finance business. In a reference under Section 256(1) of the Income-tax Act, 1961, such a finding of fact could not be reappreciated or disturbed in the absence of any legal infirmity.

Conclusion: The question was answered against the Revenue and in favour of the assessee.

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