Firm registration and referable question of law: factual findings barred a section 256(2) reference request.

Revenue's section 256(2) applications challenging denial of registration to a firm failed because the record showed the partnership deed and prescribed forms were filed, partner shares were specified, and registration had been granted after enquiry. The later objection rested on alleged lack of genuineness, but the appellate findings accepted the firm as genuine on facts and noted that any withdrawal of registration had to follow the statutory procedure under section 186(1). As the dispute was resolved substantially on factual findings, no referable question of law arose for the High Court's opinion, and the request to call for a statement of the case was declined.

---

---

Issues: Whether the Revenue's applications under section 256(2) of the Income-tax Act, 1961, seeking a reference on the denial of registration to the assessee-firm, disclosed any referable question of law.

Analysis: The assessment records and the appellate findings showed that the firm had been granted registration after due enquiry, the partnership deed and prescribed form had been filed, and the individual shares of the partners were specified. The later view taken by the Assessing Officer proceeded on the alleged lack of genuineness of the firm, but the appellate authorities found on facts that the firm was genuine and that, if registration was to be withdrawn, the statutory course under section 186(1) had to be followed. In these circumstances, the controversy was treated as having been substantially concluded on the factual plane, and no referable question requiring the High Court's opinion was made out.

Conclusion: The applications were not entertained, and the request to call for a statement of the case was declined.

---