Appellate inquiry powers and family partition findings require full evidence review before disturbing a fact-based determination.

Section 250(4) of the Income-tax Act, 1961 permits the first appellate authority to make further inquiry and receive material necessary for disposal of an appeal. The question whether a partition had taken place in the assessee's family was treated as a question of fact, and the Tribunal was required to consider the full evidence and the scope of the appellate authority's powers before disturbing the finding. As the Tribunal did not adequately address the material supporting partition and proceeded on an incomplete appreciation of evidence, its conclusion that there was no valid partition was held to be incorrect and the issue was directed to be reconsidered in accordance with law.

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Issues: Whether the Appellate Tribunal was in holding that there was no valid partition in the assessee's family.

Analysis: The first appellate authority had accepted the plea of partition after receiving further material. The Tribunal rejected that finding, but its approach was flawed because the first appellate authority was entitled under section 250(4) of the Income-tax Act, 1961, to make further inquiry and receive material necessary for disposal of the appeal. The question whether a partition had taken place was a question of fact, and the Tribunal was required to consider the entire evidence and the legal position relating to the appellate authority's powers before disturbing the finding. The record showed that the Tribunal had not adequately dealt with the materials supporting partition and had proceeded on an incomplete appreciation of the evidence.

Conclusion: The Tribunal was not correct in holding that there was no valid partition in the assessee's family, and the issue required reconsideration by the Tribunal in accordance with law.

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