Factual finding on partnership status upheld where Tribunal relied on statements and affidavit already on record.

The Tribunal's finding that Mohammed Ishaq was a partner in the assessee-firm was based on the partners' statements and an affidavit already on record. The objection that the affidavit had not been filed before the Income-tax Officer did not invalidate its use, because it was available before the Tribunal and could be considered there. The High Court treated the issue as one of factual appreciation, not a question of law, and found no legal infirmity in the Tribunal's approach. No question of law arose for reference under section 256(2), so the reference application was rejected.

---

---

Issues: Whether any question of law arose for reference under section 256(2) of the Income-tax Act, 1961 in relation to the Tribunal's reliance on the partners' statements and the affidavit to hold that Mohammed Ishaq was a partner in the assessee-firm.

Analysis: The Tribunal's conclusion that Mohammed Ishaq was in fact a partner rested on the statements of the other partners and the affidavit on record. The objection that the affidavit had not been filed before the Income-tax Officer did not displace its consideration, as it was already part of the record and could have been produced before the Tribunal. The determination whether Mohammed Ishaq was a partner was treated as a finding on facts, and no legal infirmity in the Tribunal's approach was shown.

Conclusion: No question of law arose for reference, and the application was rejected.

---