Bona fide findings on concealment and deduction claims did not raise a referable question of law for reference

Where the Tribunal's findings on concealment and the bona fide nature of an assessee's claims are based on appreciation of evidence, no referable question of law arises under section 256(2) of the Income-tax Act, 1961. The Tribunal had found that the sales tax refund was treated bona fide, that agreement to addition did not amount to concealment under section 271(1)(c), and that the deduction claim under section 80J was also made bona fide. Those concurrent factual findings could not justify a direction to state a case, so the reference request was refused.

---

---

Issues: Whether, on the facts found by the Tribunal, a question of law arose warranting a direction under section 256(2) of the Income-tax Act, 1961 to refer the proposed question relating to deletion of penalty under section 271(1)(c) and the claim under section 80J.

Analysis: The Tribunal recorded that the sales tax refund was treated by the assessee in a bona fide manner and that agreement to addition did not amount to concealment. It also found that the claim for deduction under section 80J was made bona fide. These were concurrent factual findings based on appreciation of the record. An order resting on such factual appreciation does not give rise to a referable question of law.

Conclusion: No referable question of law arose and the request for a direction to the Tribunal to state a case was not allowed.

Ratio Decidendi: Where the Tribunal's conclusion on concealment and bona fide claim is founded on appreciation of facts, no referable question of law arises for a reference under section 256(2) of the Income-tax Act, 1961.

---