Factual appraisal of partnership deed and business circumstances did not raise a referable question of law for income-tax reference.

Where the Tribunal's finding that a firm was genuine and entitled to registration rested on an overall appraisal of the partnership deed, a subsequent resolution, and surrounding business facts, no referable question of law arose. The High Court held that the dispute was confined to factual appreciation and the construction of documents within those facts, so disagreement with the Tribunal's view did not convert the matter into a legal issue. The applications for reference under section 256(2) of the Income-tax Act, 1961 were therefore rejected.

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Issues: Whether, on the facts and in the circumstances of the case, any referable question of law arose from the Tribunal's decision allowing registration of the firm under the Income-tax Act, 1961.

Analysis: The challenge was confined to the Tribunal's appreciation of the partnership deed, the subsequent resolution, and the surrounding business facts. The Tribunal had taken an overall view and concluded that only the timber business was transferred into partnership and that the firm was genuine and entitled to registration. The Court held that this was a conclusion on facts and that the construction of the document, in the context of the Tribunal's factual findings, did not give rise to a question of law requiring reference.

Conclusion: No question of law arose for reference under section 256(2) of the Income-tax Act, 1961, and the applications were rejected.

Ratio Decidendi: Where the Tribunal's decision rests on an overall appraisal of facts and the genuineness of a firm is determined on that factual basis, no referable question of law arises merely because one party disputes the construction or effect of the partnership documents.

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