Factual findings on benami business and partial partition raised no referable question of law under tax reference provisions.

Findings that the sons' businesses were benami and that partial partition was acceptable were treated as factual determinations based on the Tribunal's earlier view and surrounding circumstances, including the source of funds. On that basis, no referable question of law arose for a reference under section 256(2) of the Income-tax Act, 1961, and the applications failed on merits. The related penalty proceedings were only consequential and did not survive independently for reference purposes.

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Issues: Whether the findings that the business stood in the names of the sons benami and that the plea of partial partition was acceptable gave rise to any question of law warranting a direction under section 256(2) of the Income-tax Act, 1961.

Analysis: The disputed finding was based on appreciation of facts, including the earlier Tribunal finding and the surrounding circumstances relating to the alleged partial partition and the source of funds for the sons' businesses. Such a conclusion, being a factual determination, did not disclose any referable question of law. The penalty proceedings, being consequential, also did not survive independently for reference purposes.

Conclusion: No question of law arose for reference under section 256(2); the applications were not maintainable on merits and were dismissed.

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