Factual finding on business activity raised no referable question of law, so the expenditure issue also failed.

A Tribunal's finding that an assessee was carrying on business during the relevant year was treated as a factual conclusion, not a referable question of law. Because the existence of business activity had already been determined on the facts, no question of law arose for reference on that point. The claim that the related expenditure was allowable as business expenditure also did not survive as an independent legal issue, since it depended on the same factual finding. The request to direct a reference was therefore rejected.

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Issues: Whether the Tribunal's finding that the assessee was carrying on business during the relevant year gave rise to any question of law warranting a reference, and whether the claimed expenditure was allowable as business expenditure.

Analysis: The issue turned on whether any business activity had been carried on. The Tribunal had already found as a fact that the assessee was carrying on business. Such a conclusion was factual in character, and no referable question of law arose from it. Since the factual finding supported the Tribunal's view on business activity, the request for reference on expenditure allowance did not survive as an independent question of law.

Conclusion: No question of law arose from the Tribunal's factual finding, and the request to direct a reference was rejected.

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