Factual disallowance of social overhead expenditure raised no referable question of law for income-tax reference

Disallowance of expenditure on social overheads was deleted by the appellate authority and affirmed by the Tribunal on the facts. The High Court held that the issue turned on factual appreciation, not on any legal principle, and therefore no referable question of law arose for reference under Section 256(2) of the Income-tax Act, 1961. The request for reference was rightly refused.

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Issues: Whether any referable question of law arose from the Tribunal's order upholding deletion of the disallowance of expenditure on social overheads.

Analysis: The dispute concerned disallowance of expenditure of Rs. 24,15,515 claimed towards social overheads. The appellate authority had allowed the expenditure and the Tribunal affirmed that view. On the facts found, the disallowance turned on appreciation of facts rather than on any legal principle, and no question of law was shown to arise for reference under Section 256(2) of the Income-tax Act, 1961.

Conclusion: No referable question of law arose. The request for reference was rightly refused.

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