Factual finding on separate entity status upheld, supporting continuation of firm registration under the Income-tax Act.

The Tribunal's finding that the assessee-firm was a separate entity and not a branch of another concern was based on appreciation of evidence, including the partners' relationship, their knowledge of the firm's constitution and finances, the absence of pecuniary benefit to the other concern, payment of interest on balances, and withdrawals for personal needs. Because that conclusion was a finding of fact, it did not raise a question of law in reference under the Income-tax Act, 1961. On that basis, the firm was entitled to continuation of registration under sections 184 and 186 for the assessment years 1972-73 and 1973-74.

---

---

Issues: Whether the assessee-firm was entitled to continuation of registration under sections 184 and 186 of the Income-tax Act, 1961 for the assessment years 1972-73 and 1973-74.

Analysis: The Tribunal had examined the relevant evidence and found that the assessee-firm was a separate entity and not a branch of another concern. That finding was based on appreciation of evidence, including the relationship of the partners, their knowledge of the firm's constitution and finances, the absence of pecuniary benefit to the other concern, payment of interest on balances, and withdrawals made by the partners for personal needs. The finding was one of fact and did not give rise to a question of law.

Conclusion: The assessee-firm was entitled to continuation of registration under sections 184 and 186 of the Income-tax Act, 1961 for the years 1972-73 and 1973-74.

Ratio Decidendi: A Tribunal's factual finding that a firm is a separate entity, reached on appreciation of evidence, is not assailable as a question of law in a reference under the Income-tax Act, 1961.

---