Question of law on Section 263 reference rejected where factual findings supported the deduction claim and no document misreading was shown.

The Tribunal treated the relevant findings as factual: no part of the undertaking's profits had been transferred to the transferee company for the period concerned, the profits for the assessment years were assessed in the assessee's hands, and tax liability remained with the assessee. On that basis, the deduction claim was held to be properly allowed and the Income-tax Officer was found to have committed no error. As no misreading or misconstruction of the documents was shown, no question of law arose from the proposed reference under Section 263 and the refusal to direct a reference was justified.

---

---

Issues: Whether the Tribunal was right in holding that no question of law arose from the Commissioner's proposed reference concerning the order passed under Section 263 of the Income-tax Act, 1961 and the deduction claimed under Section 80V of the Income-tax Act, 1961.

Analysis: The Tribunal's findings were that no part of the profits from the undertaking had been transferred to the transferee company for the relevant period, that the profits for the relevant assessment years had been assessed in the hands of the assessee, and that the liability to tax remained with the assessee. On that basis, the claim for deduction was held to be well founded and the Income-tax Officer was found to have committed no error in allowing it. These determinations were treated as findings of fact, and no misreading or misconstruction of the relevant documents was shown.

Conclusion: No question of law arose, and the refusal to direct a reference was justified.

---