Cash credit genuineness found to be a factual issue, so no question of law arose for reference.

A reference under section 256(2) of the Income-tax Act was held unavailable where the Tribunal's finding on the genuineness of a cash credit was purely factual. Although two cash credits were remitted for fresh consideration, the Tribunal had already recorded that the assessee failed to prove genuineness in respect of the third credit. That conclusion depended on appreciation of evidence and did not raise any question of law for reference. The application for reference was therefore rejected, and the assessee's claim failed.

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Issues: Whether a reference under section 256(2) of the Income-tax Act, 1961 could be directed on the Tribunal's order concerning the genuineness of the cash credits.

Analysis: The Tribunal had sent back two cash credits for fresh consideration, but in respect of the third cash credit it had recorded a factual finding that the assessee failed to prove genuineness. Such a determination turned on appreciation of evidence and did not give rise to any question of law for reference.

Conclusion: No question of law arose from the Tribunal's order. The application for reference was rejected and the assessee's claim failed.

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