Pure question of fact bars a compulsory tax reference where no question of law arises from the appellate order.

A reference under Section 66(3) of the Income-tax Act, 1922 cannot be compelled where the proposed question does not arise from the appellate order and the controversy is purely factual. The assessment authorities treated an amount as profits on the basis of the books of account, the assessee's explanation that it was a gift from his aunt, and the absence of supporting evidence. The Court held that the matter depended on appreciation of evidence and factual inference, not on any question of law, and the request for reference was therefore refused.

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Issues: Whether the assessee was entitled to require a reference under Section 66(3) of the Income-tax Act, 1922 on the ground that a question of law arose from the assessment of Rs. 17,051 as income.

Analysis: The assessment authorities treated the impugned sum as profits of the assessee on the basis of the books of account, the assessee's explanation that it was a gift from his aunt, and his inability to produce supporting evidence. The Commissioner declined to state a case because, on the materials before the income-tax authorities, the matter turned on appreciation of evidence and inference from facts. The Court held that the proposed questions did not arise out of the appellate order and, in any event, the controversy was a pure question of fact. In such circumstances, no reference could be compelled under Section 66(3) of the Income-tax Act, 1922.

Conclusion: The application for reference was rightly refused and was dismissed against the assessee.

Ratio Decidendi: A reference under Section 66(3) of the Income-tax Act, 1922 cannot be compelled where the proposed question is purely factual and does not give rise to a question of law arising from the appellate order.

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