Unexplained bank credits and factual assessment under section 13 left no question of law for reference

The assessee's unexplained bank credits, being matters within his special knowledge, were not satisfactorily accounted for, so the Income-tax Officer was entitled to make an estimate under section 13 on the material available. The assessment therefore turned on the absence of evidence and on factual appraisal, not on any erroneous legal principle. On that basis, the Tribunal was justified in treating the matter as one of fact alone and in refusing to state a case, because no question of law arose.

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Issues: Whether the Tribunal rightly refused to state a case on the ground that no question of law arose from the assessment made under section 13.

Analysis: The assessee's bank credits were within his special knowledge, but he furnished no satisfactory explanation of their source. In those circumstances, the Income-tax Officer was entitled to make an estimate under section 13 on the material available. The assessment was thus based on the absence of evidence from the assessee and on an appraisal of facts, not on any erroneous principle of law. The Tribunal therefore correctly treated the matter as one turning only on facts.

Conclusion: No question of law arose, and the Tribunal was justified in refusing to state a case.

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