No referable question of law arises where proposed tax reference issues turn on factual appreciation and registration findings.

The proposed reference questions on reduction of estimated income and grant of registration were treated as factual matters, because they depended on appreciation of evidence rather than any independent question of law. The Tribunal had already found, when dealing with the reference applications, that no referable legal issue arose from its order. The High Court found no error in that view and upheld the refusal to direct a reference under section 256(2) of the Income-tax Act, 1961.

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Issues: Whether the Tribunal was justified in declining to refer the proposed questions under section 256(2) of the Income-tax Act, 1961 on the ground that no question of law arose.

Analysis: The proposed questions concerned the reduction of estimated income and the grant of registration, both of which turned on the appreciation of facts. The Tribunal had already held, while dealing with the reference applications under section 256(1), that no referable question of law emerged from its order. The Court found no error in that view, as the issues sought to be referred did not raise any independent question of law.

Conclusion: The refusal to direct a reference was upheld, and the application was dismissed.

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