Foundational factual finding required before tax reference on partnership registration could be answered; matter remanded for reconsideration.

A reference cannot be answered where the Tribunal has not recorded a necessary finding on a foundational factual issue. Here, the absence of a finding on whether the trust's share of profits was distributed in accordance with the partnership deed meant the legal question on renewal of registration could not be properly determined on the existing material. The proper course was remand for the Tribunal to record the required factual finding and submit a better statement of the case, so the reference could then be answered on a complete basis.

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Issues: Whether the reference could be answered on the existing statement of case when the Tribunal had not recorded a finding on whether the trust's share of profits was distributed in accordance with the partnership deed, and whether the matter should be sent back for such finding.

Analysis: The question referred could not be properly decided because the Tribunal had not determined the factual issue whether the trust's share of profits had been paid in accordance with the partnership deed. Without that finding, the legal question on renewal of registration under the partnership provisions could not be answered satisfactorily on the material then before the court. In such a situation, the proper course was to remit the matter so that the Tribunal could first record the necessary finding and then submit a better statement of the case.

Conclusion: The matter was sent back to the Tribunal for a finding on the distribution of profits in relation to the trust's share under the partnership deed, after which the reference could be properly answered.

Final Conclusion: The judgment did not decide the substantive tax controversy on merits and instead required fresh factual determination by the Tribunal before the legal question could be answered.

Ratio Decidendi: A reference under the tax law cannot be answered where the Tribunal has failed to record a necessary finding on a foundational factual issue; the appropriate course is remand for that finding and a better statement of the case.

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