Factual estimate of expense in incentive bonus commission deduction did not raise a referable question of law.

Allowance of 40 per cent of a Development Officer's incentive bonus commission was treated as a factual estimate of expenses likely incurred in earning the income. Because the Tribunal's conclusion depended on the quantum of probable expenditure rather than on any legal principle, it was a finding of fact. Such a factual determination did not raise a referable question of law under section 256(2) of the Income-tax Act, 1961, and the request for a direction to refer the question was rejected.

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Issues: Whether a question of law arose from the Tribunal's allowance of deduction of 40 per cent of the incentive bonus commission received by a Development Officer under the terms of employment, so as to warrant a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The allowance of 40 per cent of the incentive bonus commission was based on a factual assessment of the probable expenses incurred in earning that income. Since the Tribunal's conclusion turned on the quantum of likely expenditure and not on any legal principle, the matter involved a finding of fact. Such a finding did not give rise to a referable question of law for the High Court under section 256(2).

Conclusion: No question of law arose for reference. The application for direction to refer the question was rejected.

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