Reference under section 66 requires a real question of law, not a dispute confined to facts and evidence.

A reference under section 66 of the Income-tax Act, 1922 lies only where a real question of law arises from the order challenged. Where the dispute is confined to appreciation of receipts, the absence of books, surrounding facts, past assessments, and the sufficiency of evidence, no referable legal issue is shown. Here, the assessee's grievance concerned only factual findings that the amount represented taxable remittances and that no rebutting evidence had been produced. The HC held that no question of law arose and the application under section 66(3) was rightly refused.

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Issues: Whether any referable question of law arose from the assessee's application under section 66(3) of the Income-tax Act, 1922 seeking a case-statement and reference from the Commissioner under section 66(2).

Analysis: The application disclosed no substantive question of law. The controversy turned on appreciation of the assessee's receipts, the absence of books, and the inference to be drawn from the surrounding facts and past assessments. The grievance was directed only against factual findings that the sum of Rs. 12,800 represented taxable remittances and that no evidence had been produced to rebut that conclusion. A reference cannot be made where the dispute is confined to facts and no legal issue is shown to arise.

Conclusion: No referable question of law arose and the application was rightly refused. The decision was against the assessee and in favour of the Revenue.

Ratio Decidendi: A reference under section 66 lies only where a real question of law arises from the order sought to be challenged; a dispute limited to facts or to the sufficiency of evidence is not referable.

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