Referable question of law absent where proposed issues depended only on factual appreciation and evidence assessment.

No referable question of law arises under section 256(2) where the proposed questions rest entirely on the Tribunal's appreciation of evidence and factual conclusions. The dispute concerned the consideration received on sale of a film and the evidentiary value of correspondence relied upon; those matters did not require interpretation of an independent legal principle. Where the suggested reference is founded only on factual findings and does not disclose a legal issue arising from the order, the reference jurisdiction is not attracted. The petition for reference was dismissed.

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Issues: Whether, on the facts stated, any referable question of law arose from the Tribunal's findings so as to warrant a direction for reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The questions proposed by the Department all turned on the Tribunal's appraisal of evidence and factual conclusions regarding the consideration received for sale of the film and the evidentiary value of the correspondence relied upon. The dispute did not involve interpretation of a legal principle independent of those factual findings. Where the suggested questions are founded entirely on appreciation of facts and do not disclose a legal issue arising from the order, the reference jurisdiction is not attracted.

Conclusion: No question of law arose from the Tribunal's order. The petition for reference was dismissed, which is against the Department and in favour of the assessee.

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