No referable question of law arises where the Tribunal's interest-liability findings are purely factual and unchallenged.

An application under section 256(2) of the Income-tax Act, 1961 was found unsustainable because the Tribunal's conclusion rested on unchallenged factual findings that the assessee's liability to pay interest in the relevant assessment year was genuine and that the claim was settled in that year. Where the Revenue did not dispute those factual determinations, no referable question of law arose from the Tribunal's order, and reference was not warranted.

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Issues: Whether an application under section 256(2) of the Income-tax Act, 1961, could be allowed for directing a reference when the Tribunal's conclusion rested on findings that the assessee's liability to pay interest in the relevant assessment year was genuine and that the claim was settled in that year.

Analysis: The Tribunal had affirmed the factual finding that the assessee's claim regarding liability to pay interest in the assessment year in question was genuine and had further found that the interest claim was settled in that year. The Revenue did not seek reference on any question challenging those findings of fact. In the absence of any challenge to the factual conclusions recorded by the Tribunal, no question of law arose from the Tribunal's order.

Conclusion: The application under section 256(2) was rightly rejected, as no referable question of law arose.

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