Question of fact and perverse finding test: Tribunal's view on filing date upheld as a permissible inference on evidence.

The Tribunal's finding that the assessee filed its returns on 4 May 1963, rather than 7 October 1966, was treated as a question of fact. The High Court noted that the Tribunal had supporting material, including a certificate of posting and a covering letter stating that returns for the relevant years had been filed on 4 May 1963, and was entitled to prefer that version over the request for time made by the authorised representative on that date. The finding was therefore a permissible factual inference on the evidence, not one based on no evidence or shown to be irrational or perverse, so no reference under section 256(2) was called for.

---

---

Issues: Whether the Tribunal's finding that the returns were filed on 4 May 1963 was perverse or unsupported by evidence so as to justify calling for a statement of case under section 256(2) of the Income-tax Act, 1961.

Analysis: The finding whether the returns were filed on 4 May 1963 or on 7 October 1966 was treated as a question of fact. The Tribunal had before it the assessee's evidence, including a certificate of posting and the accompanying letter stating that the returns for all the relevant years had been filed on 4 May 1963. Against this stood the circumstance that the authorised representative had sought time on that date for filing the later returns. The Court held that the Tribunal was entitled to prefer the assessee's version and decline to draw an adverse inference from the request for time. The conclusion reached by the Tribunal was therefore regarded as one possible factual inference on the evidence and not as a finding based on no evidence or one that was irrational or perverse.

Conclusion: The Tribunal's finding was upheld as a permissible finding of fact, and no reference was called for.

---