Question of law for tax reference absent where director commission dispute turned on articles and factual payment terms.

The Madras? No, Madhya Pradesh High Court considered whether a reference under section 256(2) was justified on the deductibility of commission paid to directors. It held that the dispute depended on the company's articles and the factual manner in which commission was payable, so the Revenue's challenge raised no substantial question of law. As no referable legal issue arose, the Court declined to call for a statement of the case from the Tribunal and dismissed the petition.

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Issues: Whether any question of law arose for reference under section 256(2) of the Income-tax Act, 1961 in respect of deduction of commission paid to the directors.

Analysis: The controversy turned on whether the Tribunal's view, based on the company's articles and the manner in which commission was payable to the directors, raised a referable question of law or only a question of fact. The Court found that the Revenue's challenge did not disclose any substantial question of law warranting a reference, and that the matter did not justify calling for a statement of the case from the Tribunal.

Conclusion: No question of law arose for reference, and the petition was dismissed.

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