Section 256(2) reference requires a real question of law; pure factual appreciation does not qualify.

Under section 256(2) of the Income-tax Act, a reference is not maintainable where the Tribunal's relief rests on appreciation of facts and the findings are neither perverse nor unsupported by evidence. On that basis, a controversy confined to factual evaluation does not give rise to a referable question of law. The application was therefore liable to be rejected.

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Issues: Whether the application under section 256(2) of the Income-tax Act, 1961, seeking reference of questions said to arise from the Tribunal's order, disclosed any referable question of law.

Analysis: The relief granted by the Tribunal rested on appreciation of facts. The findings were not shown to be perverse or unsupported by the evidence on record. Where the controversy turns on factual appreciation, no referable question of law arises for consideration under section 256(2).

Conclusion: No referable question of law arose from the Tribunal's order, and the application was liable to be rejected.

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