Appellate Tribunal affirms Income-tax Officer's building valuation, rejects intangible addition. Legal queries must derive from factual Tribunal findings.

The Appellate Tribunal upheld the Income-tax Officer's valuation of a double-storeyed building over the assessee's valuation, rejecting a claimed intangible addition. The court emphasized that legal questions must stem from the Tribunal's findings, which were deemed factual in this case. The judgment concluded the income-tax reference, with the case forwarded to the Income-tax Appellate Tribunal, Cochin Bench.

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Issues:
1. Preference of valuation by the Tribunal
2. Credit for intangible addition

Analysis:
The judgment pertains to an income-tax reference from the assessment year 1974-75 involving a dispute over the valuation of a double-storeyed building. The main issue was whether the Tribunal should prefer the valuation by the assessee's valuer, an experienced engineer, over the valuation made by the Departmental valuer. The Income-tax Officer valued the construction cost at Rs. 1,19,000, while the assessee claimed to have funds of Rs. 1,00,595 available for construction. The Appellate Assistant Commissioner remanded the case based on a valuation report by the assessee's valuer, which was accepted as containing full details. However, the Appellate Tribunal disagreed and upheld the Income-tax Officer's valuation, leading to the Revenue's appeal being allowed. The Tribunal found the Officer's valuation to be based on relevant evidence and refused to credit the intangible addition of Rs. 7,990 claimed by the assessee.

Regarding the first issue of valuation preference, the Tribunal's decision was based on a clear appreciation of the evidence presented by both parties. The court emphasized that questions of law should arise from the Tribunal's findings, which, in this case, were deemed to be questions of fact. Despite additional evidence produced by the assessee, the court declined to answer the questions referred, stating they were only questions of fact. The judgment highlighted the need for legal questions to arise from the Tribunal's findings for consideration.

In conclusion, the court declined to answer the questions raised in the reference, emphasizing the importance of legal questions stemming from the Tribunal's findings. The judgment was forwarded to the Income-tax Appellate Tribunal, Cochin Bench, as required by law, concluding the legal proceedings related to the income-tax reference.

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