Finding of fact can raise a question of law when a tribunal ignores essential material and misdirects itself in law.

A Tribunal's finding of fact may still raise a question of law under section 66 where it is based on a single circumstance and ignores other material facts bearing on the issue. The High Court's reference jurisdiction is confined to questions of law, but a legal misdirection arises if the Tribunal reaches its conclusion on incomplete consideration of the evidence. The Supreme Court held that the Tribunal had misdirected itself in law, that the High Court should not have refused to call for a statement of the case, and that the matter should be decided according to law.

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Issues: Whether the Tribunal's refusal to state a case was justified when its finding was based on a single circumstance and it ignored other relevant matters, and whether such a finding disclosed a question of law.

Analysis: The statutory reference scheme under section 66 confined the High Court to questions of law arising out of the Tribunal's order, while findings of fact based on evidence would ordinarily not be disturbed. However, a question of law may arise where the Tribunal misdirects itself in law or bases its conclusion on incomplete consideration of the material before it. A finding cannot be treated as immune from reference jurisdiction if it rests on one circumstance assumed to be true while ignoring other essential facts bearing on the issue.

Conclusion: The Tribunal had misdirected itself in law, and the High Court erred in refusing to require a statement of the case; the finding gave rise to a question of law in favour of the Revenue.

Final Conclusion: The matter was sent back to the High Court for decision according to law, with costs to abide the result there.

Ratio Decidendi: A finding of fact gives rise to a question of law where the Tribunal bases its conclusion on incomplete material or ignores essential matters, thereby committing a legal misdirection in the exercise of reference jurisdiction.

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