Rule 6DD(j) finding based on material evidence did not raise a referable question of law under income-tax reference procedure.

The Tribunal's finding that the assessee's case fell within rule 6DD(j) was based on material circumstances, including the first year of business, lack of market reputation, the cash-based nature of the fertilizer trade, and practical difficulty in paying by cheque. In a reference under section 256 of the Income-tax Act, the Court cannot reappraise the sufficiency of that material or interfere merely because another view is possible. As the Tribunal's conclusion was supported by evidence, no referable question of law arose, and the revenue's application was rejected.

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Issues: Whether a question of law arose from the Tribunal's finding that the assessee's case fell within rule 6DD(j) of the Income-tax Rules, 1962, so as to justify a reference under section 256 of the Income-tax Act, 1961.

Analysis: The Tribunal had relied on several factual circumstances, including the assessee's first year of business, lack of market reputation, cash-based nature of fertilizer trade, and the alleged practical difficulty in making payments by cheque. These circumstances constituted material on which the Tribunal could reach its conclusion. In a reference under section 256 of the Income-tax Act, 1961, the Court cannot reappraise the sufficiency of that material or interfere merely because another view may be possible. Since the Tribunal's finding was supported by material, no referable question of law arose.

Conclusion: No question of law arose for reference, and the revenue's application was rejected.

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