Single business unit finding sustained deduction of closed cinema expenses; no referable question of law arose.

Concurrent factual findings that the Delhi and Lucknow cinema ventures formed one business unit meant the expenses of the closed Lucknow cinema were treated as deductible business expenses and not disallowed merely because that venture had ceased. The dispute turned on that factual unity of business, not on any separate question of law. As no referable question of law was shown to arise from the appellate findings, the Revenue's request for reference was rejected and the deduction was sustained.

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Issues: Whether, on the facts found by the appellate authorities, the assessee was entitled to deduction of expenses relating to the closed cinema business at Lucknow, and whether any referable question of law arose for consideration.

Analysis: The finding recorded below was that the Delhi and Lucknow cinema ventures constituted one business unit. On that factual basis, the expenses relating to the Lucknow venture were treated as business expenses and not liable to disallowance merely because that cinema had been closed. The challenge depended entirely on whether the two cinemas were run as a single unit, which was treated as a factual determination. In view of those concurrent findings, no referable question of law was shown to arise.

Conclusion: The Revenue's request for reference was rejected and the assessee's deduction was upheld.

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