Factual determination of the correct assessment year does not give rise to a question of law for tax reference.

The Tribunal's view that a short-term capital loss should be allowed in a particular assessment year depended on the timing of the last payment and the year in which the amount was written off. The Delhi HC treated the issue as one of factual appreciation rather than a debatable question of law, because the proper assessment year was ascertainable from the material already considered by the Tribunal. As no question of law arose from the finding, the Court declined to answer the reference under section 256(1) of the Income-tax Act, 1961 and left the reference unanswered.

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Issues: Whether the Tribunal was correct in allowing the sum of Rs. 2,62,658 as a short-term capital loss in the assessment year 1975-76, and whether the question referred under section 256(1) of the Income-tax Act, 1961 gave rise to a question of law.

Analysis: The Tribunal's conclusion rested on the factual circumstances regarding the timing of the last payment and the appropriate year of write-off. The Court found that the determination of the proper assessment year was essentially factual, based on the material already considered by the Tribunal, and did not involve any debatable question of law.

Conclusion: The Court declined to answer the referred question as no question of law arose from the Tribunal's finding.

Final Conclusion: The reference was left unanswered and stood disposed of on the ground that the controversy turned only on facts.

Ratio Decidendi: Where the Tribunal's conclusion depends on a factual appraisal of the appropriate assessment year, no question of law arises for reference under section 256(1) of the Income-tax Act, 1961.

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