Findings of fact on estimated income and expenses raised no referable question of law under income-tax reference procedure.

The Tribunal's estimates of professional income and household expenses were treated as pure findings of fact because they were based on appreciation of the material on record and the drawing of inferences from that evidence. The High Court held that a reference under section 256 of the Income-tax Act, 1961 was not maintainable where the application merely sought reconsideration of those factual determinations and did not raise any referable question of law. On that basis, the Tribunal was held correct in concluding that no question of law arose for reference, and the application under section 256(2) was rejected.

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Issues: Whether the Tribunal's findings on estimated professional income and household expenses were pure findings of fact so that no question of law arose for reference under section 256 of the Income-tax Act, 1961.

Analysis: The Tribunal had sustained the additions after appreciating the material on record and had treated the dispute as one concerning estimation of income and expenditure. The court held that appraisal of facts and the conclusion drawn therefrom amounted only to findings of fact. Since the reference application sought reconsideration of those factual determinations, no referable question of law was shown to arise.

Conclusion: The Tribunal was right in holding that no question of law arose for reference, and the application under section 256(2) stood rejected.

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